An expert has said bank lending in the mortgage market has
improved.
Bank lending terms for mortgages and home
credit packages have improved significantly over the previous
few months, an expert has said.
According to Stuart
Law, chief executive officer of Assetz, the main improvements in the
lending market have been seen on homebuyer mortgage options, which may suggest that
products such as tracker mortgage deals are
becoming more and more popular again following the global economic
downturn.
Mr Law was speaking after the publication
of data from the Council of Mortgage Lenders (CML), which stated
recently (August 19th) that gross lending for home credit packages in
the UK was up five per cent from £12.9 billion in June to
£13.6 billion one month later.
This, the
CML concluded, means that the market as a whole is likely to meet its
targeted figure of £140 billion worth of loans throughout the
duration of 2010.
Mr Law commented: "We
saw that the loan-to-values continued to improve and the loan interest
rates continued to improve. The jump that the CML has reported in
lending was quite substantial and it is the first proper set of data
since the election."
He went on to say
that any previous data released was too close to the May 6th election
and was therefore probably not a true and accurate reflection of exactly
what was going on in the country's mortgage
sector.
"What we are seeing is a continued
[and] moderate firming up in the market," Mr Law
added.
Meanwhile, a recent report conducted by
Zoopla.co.uk stated that around one third - 32 per cent - of all
properties on the market for sale in Britain today have had their asking
price reduced at least once since they were first
listed.
Also, there has been an average price drop
of 6.1 per cent for all residential properties that have been
discounted.
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