Responsible lending must not be excuse
Following the publication of yesterday’s CML figures, the National Association of Estate Agents’ (NAEA), Gary Smith said: “The figures are encouraging given that mortgage loans have increased by 67% since November 2008 however that was possibly the nadir of the housing market. It is hardly surprising that the percentage of income on mortgages has decreased given the general interest rate cuts.
“The average income multiple has remained the same over that time for both general and first time buyers but that multiple of course is far lower than at the peak in 2007.
“Whilst responsible lending must remain key it should not be used as an excuse to constrain the market especially the first time buyer segment already adversely affected by the recent end of the Stamp Duty holiday.”