'People would get mortgages if terms were reasonable'

News Category: Industry News

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Figures suggest there are people who would buy a house if mortgages were available on reasonable terms, it has been stated.

Commenting on the fact that mortgage approvals for house purchases are now 60 per cent below this time last year, Vince Cable, Liberal Democrat shadow chancellor, claimed that mortgage supply is where the "very serious problem" lies.

He explained: "There is a nationalised mortgage bank which is giving priority to contracting its loan book as soon as possible when it should be playing an active role in the economy."

The government and the mortgage industry, therefore, need to step up and find ways in which responsible lending can be restored, Mr Cable added.

However, a new housing forecast released by the Royal Institution of Chartered Surveyors (Rics) revealed that 2009 could see "opportunistic" investors returning to the market.

This, according to chief economist Simon Rubinsohn, is due to the fact that housing transactions finally hit the floor this year.

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