Mortgage lending will become more abundant in 2010, the technical director of a mortgage brokerage has forecast.
Katie Tucker of Mortgageforce said: “We’ve already seen loans-value improving, so that will get better. We will start seeing decent 90 per cent deals at an affordable level – around five per cent – from most lenders.”
She added that this will be the result of a rise in the level of competition between lenders, which will ensure that there is more leeway being offered by providers of homebuyer loans and that those with good credit ratings are not refused.
Such a situation could encourage those keen to make 2010 the year in which they move home or get on the housing ladder.
Mortgage lending has already shown signs of increasing in recent months, according to figures from the British Bankers’ Association.
Its November survey showed that £3.3 billion was agreed in homeowner loans, compared with the average for the previous six months of £2.7 billion.