New mortgages reduced
A vast majority of homeowners have lost their confidence on building their property portfolios. The housing market suggested that the number of mortgages taken out has reduced by 50 per cent.
During January period, only 50,300 loans to purchase a property took place compared to 103,000 last August 2007.
The Council of Mortgage Lenders stated that this has been the result due to current credit crunch conditions. Around August 2007, 3,320 people every day were taking on a mortgage deal. A recent survey carried out indicated only 1,620, the lowest since the CML started its records in 2002.
CML's director, Michael Coogan commented: 'the wholesale funding markets remain largely closed and mortgage funding still remains constrained. This is now having a discernible impact on lending criteria and the ability of first-time buyers to get into the housing market. It is clear evidence that the credit crunch is now having a meaningful impact on the availability of finance for home purchases.'
Looking at data from the CML group, it leaves an indication of the number of first-time buyers which decreased to 18,000 during January 20 per cent less than in December.
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