Mortgage market ‘picking up’ but subprime ‘remains tough’

An improvement in the number of people seeking mortgages is a positive development for the sector, it has been stated.

Alexander Hall chief operating officer Andy Pratt said that there are signs that the market is beginning to pick up in the second quarter of 2009, a trend that will “hopefully” continue for the rest of the year.

However, he noted that some areas in the industry are still being affected in the wake of the credit crunch.

“For example, the buy-to-let market is tough and the remortgage sector remains tough … the subprime market is obviously effectively closed,” he commented.

A lack of finance for subprime borrowers may lead to some people within this group seeking debt help in the future.

Gross mortgage lending in March stood at £8.9 billion, down from February’s level of £9.2 billion, according to the latest figures from the British Bankers’ Association.

By Jamie Price