BSA: Mortgage access the problem - not costs

04-Feb-2009

Access to mortgages is the main problem facing homebuyers rather than the cost of financing a property purchase, it has been suggested.

Because a rate cut by the Bank of England could discourage Britons from saving, liquidity in the mortgage market could be affected - meaning fewer suitable products will be available, argued the Building Societies Association (BSA).

The base rate currently stands at 1.5 per cent ahead of the Bank's decision tomorrow, after falling from 5.5 per cent in January 2008.

It comes after research by the trade group in December showed mortgage approvals were worth £836 million in December 2008 compared to £2,980 million in December 2007.

A BSA spokesperson commented: "Interest rates aren't actually a problem for buyers anymore, it's actually getting the mortgage itself."

People looking to finance their first property were recently advised by MyMortgageDirect director Catherine Hearndon to seek mortgage advice so key terms could be explained to prospective borrowers.

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