Mortgage misery continues

Despite having billions of pounds of taxpayers’ money pumped in by the government banks are still being highly recalcitrant in offering mortgages to anybody who does not have a flawless credit-record and who can stump up a hefty deposit.

One estate agent in west London said he recently had a professional couple who were both earning over £100,000 a year in secure jobs but lenders had turned them down on a house valued at £650,000 because they could not raise a 40 per cent deposit of £260,000.

“ It’s an absolute scandal,” said the estate agent, who did not want to be named. “ Even trying to get a 10 per cent deposit at anything like an affordable rate of interest is proving almost impossible as there are so few lenders in the market offering sensible deals.”

Another big problem is that very few properties are being put up for sale. An estate agent in Hampshire said: “ People are hanging on trying to get a better price. They are living in cloud-cuckoo land if they think prices are going to rocket in a short space of time.

“ The market is definately getting better. But it will take a while. There is a great upsurge in interest. People want to buy. But with mortgages thin on the ground and so few properties for sale the market still has a way to go. The banks and lenders have got to start living up to their side of the bargain. They’ve been saved from bankruptcy with public money and it’s now high time they started showing a little appreciation.”