Almost 25 percent of homeowners cannot get a new mortgage loan
Earlier this month a report was released that indicated that almost a quarter of all homeowners in the UK were unable to find a new home loan deal.
The reason given for this is that lending criteria has become far stricter, making it harder for many consumers to get the finance they need, which includes homeowners that are looking for a better mortgage deal. The data comes following a survey that was carried out by the National Association of Estate Agents.
The survey by the NAEA showed that nearly one in every four homeowners in the UK was unable to get a new, more suitable mortgage deal as a result if tighter lending criteria, with around 22.5 percent of those polled by the NAEA stating that they could not get a better suited mortgage due to the current financial climate.
The results of the survey also showed that more than 50 percent of those polled thought that if lenders relaxed their lending criteria a little and reduced the level of deposit that they were demanding then these homeowners would have a far better chance of securing a new mortgage deal.
As part of the survey eighteen hundred homeowners were polled by the NAEA, and almost 60 percent of these said that in order to help the recovery of the property market lenders had to take measures to make it easier to get mortgage loans for consumers.
One industry official said: “We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest. The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions to help get the economy moving again.”
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