Banks in the UK have been accused recently of ‘choking’ the housing market by failing to hand out mortgage loans, even to the best buyers with five star credit.

It was revealed in a recent report that even the most credit worthy consumers may find that it takes months to secure a suitable mortgage, and this has been blamed on banks holding onto their cash in order to bump up their financial reserves, which is effectively brining the housing market to a grinding halt.

Industry experts are now stating that banks are being too restrictive with their daily mortgage lending levels, adding that banks were putting daily lending limits into place and once these limits had been reached they were turning down other customers for loans even if they had five star credit ratings.

These customers were then forced to wait weeks on end for more cash to be made available before being considered again for mortgage finance.

Experts added that often demand was so high for these loans compared to the availability of cash that often those than went to a lender after 10am were being turned away because there was no cash available.

One expert stated: “It used to be just those with a poor credit history would find it difficult to obtain a mortgage. But now there’s no guarantee that five-star borrowers will get a deal because lenders are restricting the amount of funding available. It’s a fresh blow to Britain’s middle-classes which are already dealing with rising unemployment and repossessions.”

Another industry official added: “It is bad news for consumers that mortgage deals are only appearing in the window for such a short period. There are now only a limited number of cheaper deals available and before the consumer has chance to look at them a second time, they are gone.”

Leave a comment