19th November 2009: PPR - Gross mortgage lending increases
Nick Hopkinson, Director of Property Portfolio Rescue (PPR), comments on the CML October gross mortgage lending data, out today:
“The small monthly increase in gross mortgage lending over October is encouraging to see, especially as it is being driven solely by new borrowers.
“Unfortunately, the total number of new mortgages in Q4 2009 will remain at least 60 percent lower than pre-credit crunch volumes; re-enforcing how tight lending criteria continue to be and how little new money is really available to all but the most affluent borrowers.
“Remortgaging remains either unattractive due to punitive rates and charges or impossible due to low levels of equity. A significant proportion of homeowners are paddling furiously to keep their heads above water, as they struggle against falling household incomes, arrears and the threats of higher taxes. House prices will remain suppressed against this backdrop and may well fall again in the new year as the stamp duty holiday ends.”
For further insight and commentary on the impact of today's news on the residential property market Contact us.
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