Providers out of love with mortgage market
Neil Blake, director of economic analysis at Oxford Economics, said despite mortgages being “one of the safest assets” to invest in at the moment, providers are still reluctant to lend.
He believes that the mortgage market is not in free fall and while the average house price in Britain continues to fall, there are some areas in Britain seeing price increases.
Blake said the difficulty consumers are having in finding mortgage funding for house purchases has consequently driven up demand for private rental accommodation. He believes it is therefore an ideal time for investors to enter the buy-to-let market however one of the biggest barriers there too is that the funding isn’t available.
Blake said: “Providers have certainly fallen out of love with the mortgage market.”