Lack of lending stops you from being able to sell your house fast (video)
Figures released by the council of mortgage lenders show that the amount that banks are prepared to lend has fallen. This time last year the banks had already loaned almost £2bn more to those who were wishing to attain a mortgage. It’s strange to see that we have effectively gone backwards when the government should be doing all they can to pull us out of this recession. This fall of 20% is largely down to the looming European economic crisis, it can be assumed that the banks are taking a far more cautious approach just in case countries like Spain and Greece were to go bankrupt.
The fact that the UK banks have received billions of pounds from tax payers money to inject some liquidity into the financial system you would expect this to help the average UK borrower, however this has not been passed onto those who wish to take out a mortgage and buy a house, it seems more likely that this money has been used to fill in some holes and pay off old debts. Recently, for one side of the market the new home builders have shown a large increase in buyers and this is down to new first time house buyer initiative schemes that allow people to purchase a new build home with only a 5% deposit. Of course this is going to attract buyers, reason being they are able to attain a mortgage.
Do not wait to sell your house
As mentioned in our blogs before, until the banks open their doors and allow people to easily attain a mortgage it is unlikely that any significant improvement in the property market will happen. In fact, this has been proven even more so in the past 6 months as transactions have fallen back along with the average house price. The whole UK is stuck in a chain and the liquidity that has been given to the the banks should have been the oil to get things moving again, like in the US were the money has been passed on to those buying a house and the property market has improved. Different to the UK, the US government seem to actually care about the state of their property market, here in the UK we seem quite prepared to squander tax payers money and let the dust settle a bit more. Isn’t anyone else asking where have all these billions of pounds gone, we were promised that these large injections of cash would be put to good use.
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