UK banks will not increase mortgage lending this year as extra regulatory pressures and a lack of funds continue to restrict the availability of finance to borrowers, Hometrack says.
The mortgage market tracker has predicted lenders will approve 1.2m mortgages over the next 12 months, which marks no change on its 2010, figures and a decline on the 1.3m approved in 2009. Hometrak expects 575,000 home purchases, 355,000 remortgages and 270,000 other borrowings secured on homeowners’ properties this year. David Catt, chief operating officer, says: "This a far cry from the three million-plus mortgages that were issued at the height of the property boom in 2007. "The benchmark has been reset and what we're seeing now is a new norm in lending." In 2011 the lending...
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