Insurance News Archive

Mortgage market has 'stabilised'

Written by Michael Brown

While personal financial circumstances are resulting in a relatively subdued level of transactions in the housing market, the mortgage industry appears to be stabilising, according to a new report.

The British Bankers' Association (BBA) commented on the emerging trend in the home buying sector, which it believes is slowly bottoming out due to a combination of increased confidence and lower prices.

David Dooks, the statistics director at the BBA, explained: "The house purchase part of the mortgage market appears to have stabilised, with slightly more approvals coming through, although April's weak net mortgage lending reflects the lower number of approvals in previous months."

However, the next few months may prove to be more fruitful for the mortgage market, according to the Royal Institution of Chartered Surveyors (Rics).

The organisation explained that the "massive stimulus" in the mortgage industry provided by the Bank of England will have a "marked effect" on lending, while government guarantees for asset-backed securities may also improve buyer confidence.

27 May 2009