Mortgage confidence is returning, says expert

Consumer confidence is starting to be restored to the mortgage market as rates remain low, an expert has indicated.

Andy Pratt, Chief Operating Officer at Alexander Hall, said that lending is starting to improve, although the issue of restrained funding still remains.

"We are not likely to see a lot of new entrants coming in with substantial amounts to lend so the competition will be amongst the existing lenders that are already out there," he predicted.

Mr Pratt indicated that competition which already exists in the market has driven rates lower, as opposed to more funding being made available.

The Council of Mortgage Lenders reported last month that gross mortgage lending fell to an estimated £9.1 billion in January 2010.

This marks a 32% fall from £13.4 billion in December 2009 and a 21% decline from £11.5 billion in January last year.

Posted by Martin Ellis