Rics says borrowers losing confidence |
08 2008 |
| The Royal Institution of Chartered Surveyors (Rics) believes that there needs to be a shake-up of the UK mortgage market if borrowers are to be attracted back. According to the organisation, potential borrowers are being put off taking out a loan because they are being rejected even when they have a good credit history. It is because lenders are not making it clear what the minimum loan-to-value is that they are willing to lend on. The difficulties faced by many borrowers are leading them to rent instead as this is often seen as easier and more cost effective. "There is finance available but it is so inconsistently available and it is sending out such a difficult message to prospective purchasers," Jeremy Leaf, Rics spokesman, told BBC Radio Five Live. "If your lender, whom you have been with for many years, or somebody you want to do business with, suddenly tells you that even when you are apparently very credit worthy you cannot have that loan, then inevitably it is going to have some effect on your confidence and may even deter you from buying," he continued.  |
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