House buyers suffer as credit conditions batter mortgages

Tim Wallace
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TIGHTER credit conditions are starting to impact on lending to home-buyers, according to chartered surveyors’ figures published today.

Loans for home purchase dropped to 43,450 in March – an 11 per cent drop on February and the lowest since December 2010, e.serv’s mortgage monitor revealed.

First-time buyers particularly suffered, with loans for homes under £125,000 falling 14 per cent, from 12,247 in February to 10,428.

Banks were also increasingly reluctant to lend to those with small deposits – only 10 per cent of loans went to buyers with deposits below 15 per cent.

“Until now high-street mortgage lenders have been able to absorb steadily increasing costs, rather than passing them onto the consumer,” said e.serv’s Richard Sexton. “Mortgage availability will continue to fall in the next three months.”