Declining mortgage lending 'unsurprising'

It is unsurprising that mortgage lending declined in October given the levels of unemployment and lack of confidence in the market, according to the Royal Institution of Chartered Surveyors (Rics).

Commenting on data published by the British Bankers' Association which revealed an eight per cent drop in lending, Rics senior economist Oliver Gilmartin said: "These conditions highlight the difficulties facing first-time buyers, particularly where stringent deposit requirements continue to be a major barrier to those wishing to enter the market."

He added that the Bank of England's interest rate cut implemented earlier this month will eventually filter through to the market, particularly if another cut is announced before Christmas.

Meanwhile, the future for first-time buyers looks "extremely bright", according to mortgage specialist and chief executive of Firstrung Paul Holmes.

Continuing falling prices along with a possible further cut of the base rate could boost affordability for people trying to get into the market.

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