Mortgage restrictions have gone 'too far'

People struggling to access the best mortgage rates will be interested to hear that the prime minister has said that some banks have gone "too far" in restricting mortgage lending since the recession.

According to MyMortgageDirect, lenders should apply more "common sense" when dealing with an application for a new mortgage.

Catherine Hearnden, director at MyMortgageDirect, said: "I would agree that we need to take away the silly restrictions and apply some common sense, but not go back to where we were three years ago."

She added that the prime minister's comments are unlikely to encourage lenders to reduce restrictions, instead, believing it will take a major lender changing its policies to spur on the rest of the mortgage market.

"Once a big lender starts, then the next big lender will follow and then it will [create] something sensible," Ms Hearnden said.

In other news, the Bank of England recently reported that the number of loan approvals for house purchases increased in November 2010 to 48,019.
 

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2011-01-10 14:50:02 © Moneyextra.com