Mortgage lending is going down the tubes with the economy, according to figures for the month of September. Many so-called mortgage experts were shocked to find that mortgage lending in September was even lower than in August, which is traditionally the weakest 30 days of the year.
Even more experts stood with their mouth’s agape as it was revealed that the numbers for September were down from the numbers of last September and actually represented the lowest figures in ten years.
The uncertainty of the economy and job futures in both the public and private sectors is holding interest in mortgages down, say some experts. Others say that banks are simply withholding money by making it more and more difficult for buyers to qualify. Whatever the case, mortgage brokers are beseeching the government to do something.
Brokers and Brokers’ Organisations are saying that the government simply cannot cut back on processes to aid borrowers in its comprehensive spending review. If this is allowed to get worse by cutting plans to help homeowners, who knows what it might bode for 2011.
These numbers follow even more dire indicators that the UK may be invariably sliding to double-dip recession. So far, a concentrated effort by all concerned has kept repossessions and mortgage arrears down despite very trying economic times, but Mortgage Brokers are worried that cuts in these types of support mechanisms could bring the house of cards tumbling down.
They point out the dramatic affect such a collapse would bring not only to the lending sector but to house pricing as well. Were this crumple allowed in the lending market, the repercussions would be felt throughout the entire economy, they warn.