Rock delay harming mortgage supply, says expert

Delays in the granting of permission by the European Union (EU) for the British government to use the nationalised Northern Rock bank to lend more mortgages is harming the supply of home loans, an expert has said.

Ray Boulger, the senior technical manager at mortgage brokerage John Charcol, stated that the current property market is being held back by a lack of finance, which more lending from Northern Rock could help to address.

He noted that due to the public ownership of the bank EU permission is required for such lending, something he labelled “pretty ridiculous bearing in mind that it is a UK- only bank that doesn’t affect anywhere else in Europe”.

Mr Boulger added that he had expected the go-ahead to have been given by now.

Those keen to find a better mortgage deal may wish to search to see what is available now.

Figures from the Council of Mortgage Lenders indicated that there was a 17 per cent rise between May and June in mortgage lending, although this still left the tally 48 per cent lower than in the same month in 2008.

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