Faith in mortgage borrowing 'slowly being restored'

Posted: 21 Apr 2010 10:17:49 GMT

Homeowners' faith in mortgage borrowing is gradually being stored, according to one expert.

Jon Brown, partner relationship manager at iammoving.com, says as people become more confident in the state of the housing market, many areas of the UK are also reporting a stabilisation or increase in property prices.

"The fact that the property market is now seen to be out of its dip has the dual benefit of encouraging more people to place their house on the market and encouraging more home movers to consider buying," he states.

Mr Brown suggests that providing Bank of England interest rates remain low, he expects there to be a "gentle continued growth" in the property sector over the next few years.

His comments come as new figures from the Council of Mortgage Lenders show gross mortgage lending increased from £9.3 billion in February to £11.5 billion in March, marking a rise of 24 per cent.

However, gross home loan lending as a whole in the first quarter of 2010 declined by 24 per cent from the fourth quarter of 2009.

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