Officials from the Council of Mortgage Lenders have recently stated that the situation with mortgage lending levels may get worse, stating that whilst mortgage lending has certainly been rationed over the course of this year as a result of the global credit crunch and tighter lending conditions the likelihood was that it would be further restricted over the coming year.

Michael Coogan from the CML described the market as being dysfunctional, and many could struggle to cope with the difficulties that come with the restricted mortgage market.

Since the onset of the global credit crunch millions of consumers have struggled to get a mortgage, as lenders have tightened up on their lending criteria as a result of a shortage of funds to finance their mortgage lending activities.

Mr Coogan stated: ‘We have, in effect, returned to mortgage rationing.’

Although the government has ploughed billions into trying to increase liquidity amongst lenders he added that this was not enough.

Mr Coogan went on to state: ‘Unless Government takes further targeted action to help market participants, we will see a worsening picture next year compared with this.’

Many people have struggled to get a mortgage as a result of these tighter credit conditions over the past year, and government intervention has failed to have the desired effect of returning liquidity to the financial markets based on figures that have been released in relation to mortgage lending.

Amongst those to have been severely affected are first time buyers, many of whom have little to put down by way of deposit due to lack of savings and equity, which has become an increasing problem due to the higher deposit levels that many lenders are demanding.

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