Mortgage lenders 'are still rationing credit'

Posted: 18 Aug 2011 16:59:39 GMT

The best mortgage rates are still kept for those with the most equity, it has been claimed.

Mortgage lenders in the UK are continuing to ration credit, reserving the best rates for individuals with the most equity, it has been claimed.

Matt Griffith, spokesman for PricedOut - a national campaign for affordable house prices - said it is unlikely this pattern will change anytime soon.

The industry figure noted, however, that encouraging signs are beginning to show in the market, suggesting lenders may be taking the saving needs of first-time buyers into more serious consideration.

Mr Griffith observed the industry can take a number of steps in order to help in this regard, adding: "First-time buyers can get no credit at all for regular savings behaviour in their credit ranking - which is daft, particularly if we are looking to encourage longer-term savings behaviour."

His comments came after the Council of Mortgage Lenders recently revealed gross mortgage lending in July stood at an estimated £12.6 billion - marginally lower than the £13.3 billion recorded in the same month a year earlier.
 

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