Recent reports that the UK’s property sector might be in the process of recovery may be a little premature, one specialist has suggested.
Mortgage expert at comparison site Moneyextra.com Richard Mason said that many people may have been overly optimistic following the Bank of England base rate cuts.
He remarked: “When the base rate came down to its record low three or four months ago, we saw a response in the market that suggested the end of the recession was in sight.”
However, tight lending criteria and the lack of transactions taking place is causing individuals to think twice, Mr Mason added.
The number of mortgage deals available has dropped by 15 per cent and providers should now start to make more money accessible to buyers instead of hindering a recovery, he stated.
Earlier this month, a spokesperson for Moneyfacts confirmed that homeowners were becoming increasingly concerned about interest rates, leading them to seek out fixed-rate mortgages.
By Francis Finch