Mortgage lending falls sharply says National Homebuyers

There may be a surge in people seeking a fast property sale after the Council of Mortgage Lenders (CML) revealed that lending was down in December.

[ClickPress, Tue Feb 19 2008] The organisation has published figures for the month, showing that 62,100 mortgages were approved, the lowest level since February 2005.

It was a marked decrease on November's figure, which stood at 79,700, and may lead to more people trying to secure a fast property sale.

Howard Archer, economist at Global Insight, revealed that his firm believes house prices are set to fall over the next couple of years.

"Global Insight expects house prices to fall by five per cent in both 2008 and 2009," he commented.

"There is clearly a very real danger that a sharp housing market correction could occur. A growing risk is that the economy suffers recession, or even extended weak growth, and unemployment rises significantly.

"This would be liable to lead to a marked increase in the number of people having to sell houses for distressed reasons, particularly given the extent to which many households have had to stretch themselves to the limit to buy a house," added Mr Archer.

Fast property sale expert Julian King adds, "The lack of buyers in the market means that they are calling the shots on property prices.

"The lenders' criteria are now such that fewer and fewer people are able to progress along or join the property buying line.

"Homeowners finding it difficult to attract a buyer should consider a sizeable reduction in their asking price or a quick property sale".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that completes at a timescale to suit the vendor. The company also arranges Sell and Rent Back solutions for homeowners seeking equity release.

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