Mortgage lenders ‘need to improve flow of finance’

The “main priority” for the stimulation of the UK property market should be persuading banks to offer more mortgage deals at competitive rates, it has been claimed.

According to Steve Turner, head of communications at the Home Builders Federation (HBF), government schemes designed to boost lending could increase the rate of mortgage approvals within the “next few months”.

“The crux of the issue in terms of the housing market is getting banks lending again at sensible rates to people who want to buy homes,” he explained.

Recent figures from the Council of Mortgage Lenders (CML) indicated that mortgage lending last month dropped by nine per cent compared with March 2009 to around £10.4 billion, 60 per cent below the total for April 2008.

The organisation has forecast that gross mortgage lending for 2009 will be £145 billion.

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