New talks could spark shift in mortgage lending
The restrictions on mortgage lending have caused a huge strain on the property market, but things could soon be about to change as John Elliott, Managing Director of Millwood Designer Homes, explains:
The Home Builders Federation (HBF), after discussion with the Council of Mortgage Lenders, facilitated talks between the leading FTSE listed house builders and mortgage lenders to find ways of increasing the funds available to be lent. I am pleased to say that these talks were very largely successful.
The return of mortgages worth 95% of a property's value, which largely disappeared in the wake of the financial crisis, is part of the discussions that have been held in an attempt to get the UK's sluggish housing market moving again.
I have talked considerably over the last few months about the importance of Britain building again, and the huge financial benefits that it will bring to our economy, but this will be pointless if we do not try to help the hundreds of thousands of people out there that are struggling to find a mortgage in the first place.
The housing market is still operating well below historical activity levels and poor availability of mortgage finance is restricting demand, especially for first-time buyers. These new talks are certainly a step in the right direction.
Such initiatives to stimulate the sector would seem to be timely, too, as nearly two-thirds of young people without their own homes believe they have no prospect whatsoever of stepping on the property ladder, according to mortgage lender Halifax. The perception that banks aren't lending, the size of mortgage deposits and a fear of the application process has prevented many from making any significant attempts to buy a home, which could fundamentally change the shape of Britain’s housing market within a generation.
Millwood currently has a range of properties in locations throughout Kent, Surrey and Sussex. For more information about any of the developments, visit: millwooddesignerhomes.co.uk
