No more 'loose' credit for homebuyers

Posted: 23 Oct 2008 12:26:44 GMT

An end to loose credit does not necessarily mean that there will be no more competitive pricing in the mortgage market, it has been claimed.

According to Moneyfacts.com, lenders are no longer offering the cheap deals they did last year because property values are falling and bank security has been obliterated.

However, the independent financial comparison site explained that current high mortgage rates reflect a lack of liquidity in the market.

Darren Cook, a spokesperson for the site, elaborated: "Hopefully we are seeing the end of loose credit and banks taking more account and assessing the risk and looking at the overall picture before they approve debt."

"There is still competition for new business out there and hopefully that will return but not to the extremes."

The Council for Mortgage Lenders reported this month that gross mortgage lending reached £17.7 billion in September 2008, down ten per cent from August and a staggering 42 per cent compared to the same month last year.


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