House purchase loans up on September levels

Posted: 10 Dec 2008 11:59:22 GMT

The volume and value of loans for house purchases last month was up on the levels seen in October, it has been revealed.

Figures released by the Council of Mortgage Lenders (CML) show 39,900 loans were taken out by homebuyers in October, which is 14 per cent more than in the month previously and a ten per cent increase in terms of value.

However, the October figures were down significantly on their 2007 equivalents and Michael Coogan, director general of the CML, believes lenders are unlikely to offer consumers more attractive deals in the near future as they are still struggling to come to terms with confused government directives.

"Current policy objectives are conflicting and incoherent," he commented.

"The government needs to decide on its key priority. The tug of war with lenders being pulled in every direction at once needs to end."

This suggests that home movers and first-time buyers will continue to find it hard to fund house price purchases, which could ultimately lead to an increase in the time it takes to sell a home.

One thing buyers do have going for them is that house prices have fallen significantly over the last year.

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