Lenders could be prepared to ease their strict mortgage criteria in the second half of the year if house prices perform well in the coming months, one expert has claimed.
Gary Styles, strategy, risk and economics director at Hometrack, said companies are set to examine dwelling values during early 2012 in a bid to determine if regulations should be slackened – making it easier for prospective buyers to borrow money.
The expert went on to state that individuals in the possession of substantial deposits for a new property will have an easier time finalising a home loan than those without, who remain “constrained” in the current economic climate.
He added: “The first five or six months of this year could determine whether lenders choose to ease back a little bit in terms of their lending criteria – particularly to first-time buyers.”
Despite this, the Royal Institution of Chartered Surveyors recently revealed that property sales actually increased last month, primarily as a result of a surge of individuals hoping to step onto the housing ladder taking advantage of the stamp duty holiday.