The mortgage market in the UK could be set to benefit following the announcement of new government policies regarding the home loan sector.
Ray Boulger, senior technical manager at John Charcol – an independent mortgage adviser based in the UK – has noted gross lending may improve after chancellor of the exchequer George Osborne outlined plans of the new lending scheme for banks as part of his Mansion House speech.
Mr Boulger explained these levels may therefore climb to around £141 billion – the amount reached in 2011.
He observed the new setup should result in banks being handed more money to lend, adding: “We are in a situation where quite a lot of people who are credit worthy are not able to get a mortgage simply because there is not enough money available.”
The comments come after the British Bankers’ Association recently released figures highlighting a dip of 3.4 per cent for house prices in May when compared with the same four-week period last year, while the average house purchase mortgage approval was recorded as £165,300.
