High prices to blame for low mortgage lending

Overly optimistic asking prices are causing delays on mortgage applications, resulting in an overall slowing in the growth of mortgage lending.

"Asking prices may have increased for the fourth month in a row, but speculation that the market is turning is optimistic," Taylor said.

"Sellers may be raising their prices but this is precisely why buyers are having difficulty securing mortgages – lenders are well aware how inflated these prices are.

"I would strongly advise anyone who needs to move house to price their homes competitively rather than hanging on in the hope that prices will rise any time soon."

GetAnOffer.co.uk offers the following top tips for selling property in 2009:

1 Be realistic – sellers need eye-catching asking prices and should be prepared to sell slightly below market value. Do not hold out for every last penny when the market could and probably will fall further;

2 Avoid quick cash-buying companies – these may offer quick sales, but for ridiculously low asking prices;

3 Be vocal – sellers should tell friends, family and anyone else who will care to listen that their house is for sale. Attach a link for the property brochure to email signatures to help the sale go viral;

4 Avoid time-wasters – estate agents will show prospective buyers around a property regardless of whether the buyer has sold their own property. This is fine in a plentiful market, but in the current market, "ready to go" buyers with their finances in place are a better option

5 Throw in freebies – tell potential buyers the fancy TV, garden furniture, carpets and curtains are included in the sale. Some sellers are even offering to pay the buyer’s legal fees. Every little helps in this market.

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