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Property sector 'being stifled by high deposits'
Posted by Emily Swanson
Growth in the property sector is being subdued at present by demands for unaffordable mortgage deposits from many banks and building societies.
That is the view of Paul Hearnden, director at My Mortgage Direct, who noted that conditions remain extremely tough for prospective first-time buyers in the wake of the recession.
Mr Hearnden explained that many people are finding it impossible to get their feet on the housing ladder because financiers are insisting on receiving large down-payments on the majority of available homes.
Research published recently by the Council of Mortgage Lenders found the aggregate loan-to-value ratio on mortgaged property in the UK to be less than 60 per cent and the My Mortgage Direct official stated that such figures are "stifling the market".
Therefore, he concluded that the only way many people can afford to purchase an abode is if they receive sufficient help and assistance from their parents.
16/08/2011 15:06
News category: Property