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Mortgage trends fuel collapse fears
Thursday May 6th 2010
A static mortgage market could be a sign of uncertain and troubling times to come for homeowners, figures underlining the importance of mortgage payment protection insurance have revealed.
Statistics published by financial information website Moneyfacts.co.uk showed that the average shelf life of a property loan deal had nearly doubled in the past month, rising from 17 days in March to 30 days in April.
A spokesman for the group put the trend down to fears over the effect a new government might have on the sector, explaining that many lenders were sitting on their hands to see what would happen after the General Election.
"The extended shelf life of a mortgage product to 30 days coupled with falling average rates clearly demonstrates that parts of the market have become static," Darren Cook said.
"Lenders may be waiting to see what influences a new Government will have. Lending figures show us that there is still a lack of motivation from either new borrowers or lenders to transact in the current climate."
Analysts have warned of the possibility of serious instability caused by job losses and repossessions if the economy does not recover as quickly as expected.
Copyright © Press Association 2010
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