Mortgage lending down in June Friday, 30th July 2010

The Bank of England has reported that mortgage lending was down in June, This brings lending back down to the levels of May 2009 when the economy was still in recession. This has made for fierce criticisms by brokers that lenders have become sluggish.

The dip in lending was below forecasts made by the industry itself, and the Council of Mortgage Lenders said that the mortgage industry would be 'quiet' well into autumn.

Thse figures are further confirmation that banks are still not lending in sufficient quantities. It has led to frustration felt by many would-be borrowers.

While mortgage lending has become more profitable for many lenders, first-time buyers have every right to feel discriminated against, as it is too often targeted at those customers who are already well catered for. Lenders are lending to safe bets.

Lenders need to revitalise the mortgage market place. More competition and thinking outside the box is required to meet current levels of demand, which are most probably is higher than the banks would tell us.