UK Homeowners unable to get mortgage loans

Earlier this month a report was released that indicated that almost a quarter of all homeowners in the UK were unable to find a new home loan deal.

The National Association of Estate Agents believe that this is directly related to how lending and loan criteria has become far more difficult and lengthy at business banks, its harder for many consumers to get the finance they need, which includes home owners that are attempting to alter their mortgage deal or first time buyer mortgages.

The survey also went on to show that one in every four homeowners in the UK were unable to get a new, more suitable mortgage deal as a result of stricter practices, almost 22.5 percent of those polled by the NAEA stating that they were unable to find a suitable mortgage due to the current financial climate.

It also showed that more than 50 percent of those polled thought that if the banks eased on lending criteria, or reduced the high upfront cash demands of a deposit that they would have a far better chance of securing a new mortgage deal.

One industry official said: “We cannot let the corporate banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest. The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions, and having confidence in lending investments again would help to get the economy moving again.”