Mortgage lending slumps according to National Homebuyers
Many UK homeowners may consider seeking a fast property sale after it was revealed that mortgage lending plummeted in January.
[UKPRwire, Wed Mar 19 2008] According to the Council of Mortgager Lenders (CML), loans approved for house purchase fell by 19 per cent month-on-month.
There was also an annual decline of 34 per cent, a clear sign of the troubles currently being experienced in the mortgage market.
Further to this, only 39 per cent of first-time buyers managed to avoid paying stamp duty, with 11 per cent paying one of the higher bands.
This too is bad news for homeowners as first-time buyers who are struggling with affordability may avoid the market altogether unless the stamp duty threshold is raised.
With fewer buyers entering the market, many people may seek a fast property sale.
"The wholesale funding markets remain largely closed and mortgage funding still remains constrained," said CML director general Michael Coogan.
"This is now having a discernible impact on lending criteria and the ability of first-time buyers to get into the housing market," he continued.
Fast property sale expert Julian King says, "It gets increasingly difficult for homeowners to sell their property at full value.
"The few available buyers are calling the shots and homeowners who cannot afford to see the value of their property fall are encouraged to find a quick sale of their property, to limit losses.
"Homeowners in financial difficulty should consider a mortgage rescue scheme like Sell and Rent Back".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm, guaranteeing to make an offer to purchase any property in the UK, regardless of its condition or location. The company is also the UK leader in Sell and Rent Back solutions. Sell and Rent Back is an equity release style solution where the homeowner can sell their property for cash, but remain in their home as a tenant.