Demand for mortgages 'could drop in the future'
Published On 9 April 2008
The demand for new mortgages in the UK could eventually dry up, an industry expert has suggested.Rebecca Atkinson, the new editor of moneywise.co.uk, explained that the recent decision by First Direct to cease offering mortgages to new customers indicates that lenders are reacting to a changing economic market.
She added that economic uncertainty was also affecting demand for mortgages, especially among first-time buyers.
"If you're a first-time buyer, for example, you've seen in the papers about negative equity and you know it's hard to get a mortgage," Ms Atkinson explained.
"In terms of demand, I think people still do want mortgages, but how long that will last remains to be seen, mainly because of there being few first-time buyers, because it's harder for them to get a mortgage without a large deposit."
What's more, Ms Atkinson explained that first-time buyers played a vital role in maintaining the health of the whole housing market.
"First-time buyers are needed to keep the whole thing well-oiled and moving.
"Without first-time buyers, the whole housing market seizes up," she concluded.
Recently, Experian said that people coming to the end of fixed-rate mortgage deals should "spring-clean" their credit reports before they look for a new loan.
