"The high street banks have provided almost three-quarters of all new mortgage lending during the last two years when the mortgage market has been very subdued."
"Overall companies’ appetite for finance remains low, reflecting business decisions in difficult trading conditions – new finance made available to one company is simply being offset by debt repayment from another."
"Demand for borrowing from both households and companies continue to be weak reflecting the slow growth in the economy."
David Newnes, director or LSL Property Services, said:
“An extra £400 million injected into the property market in July and this is exactly what is needed to ensure first time buyers are able to access the properties they crave. But so far, it’s nowhere near enough to make a difference. If we’re going to see a significant recovery in the market for properties, we need to see a prolonged period in which lending grows. Fortunately, that’s not out of the question. Despite an uncertain outlook for economic growth, it appears highly unlikely there will be a rise in interest rates in the next 12 months and that means lenders know mortgage affordability is currently very good. Low rates give lenders greater confidence in borrowers’ finances and will over the next few months be instrumental if we are to see an ongoing rise in the volume of mortgage finance going into homebuyers’ pockets”.
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