PPI Claim News - 20/4/2011
Loan protection: Mortgage lenders attitudes 'not helping market'
The attitudes of mortgage lenders are not helping to boost the housing market, an expert has said.
This may come of interest to people who took out loan protection, as they may be affected by the new homes market.
Vernon Pethard, managing director at newhomesforsale.co.uk, a specialist website, dedicated solely to newly built homes, said: "Fragile confidence and a general discrimination against new-build homes are the major factors restricting price growth in the new homes sector.
"Lenders generally discriminate against new-build homes, by unjustifiably offering lower loan-to-value mortgages on brand new properties compared to re-sales."
He added that this makes it harder for people to buy a new home, meaning demand is held back.
Smart New Homes recently reported that the average price of a new home fell by 0.4 per cent in March, down to £218,344.
It revealed that annual growth in new home prices stood at one per cent at this time.
Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.
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