Lack of mortgages ‘slowing down’ housing market

Activity in the housing sector has remained slow despite falling interest rates due to a lack of mortgages, one industry representative has claimed.

Founder of property website David Amstell stated that finance is “still quite hard to come by” for most potential home buyers, with the recent base rate cuts not being passed on to consumers.

He commented: “Even though interest rates are at a fantastically low level, it is not reflected in the high street.”

Loan-value levels remain “very poor” in the wake of the economic downturn, Mr Amstell explained.

He noted that while 95 per cent mortgages could be obtained in recent years, these have now fallen to an average of around 70 per cent.

This means typical borrowers will need to find 30 per cent of a home’s value as a deposit before acquiring a homeowner loan.

Meanwhile, house prices dropped by 1.7 per cent last month, according to figures from Halifax.

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