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CML highlights "gap" in secured loan demand
A "gap" in the mortgage market has caused concern at industry group the Council of Mortgage Lenders (CML).
In analysis released today, the organisation pointed out that the number of people looking for a home loan could be outstripping the number of affordable loans on the market.
The credit crunch has caused a marked dip in secured loans approvals, with the CML's own figures showing a 50 per cent annual decline.
House prices are also down by around 20 per cent.
Partly in response to the property slump, the Bank of England has slashed interest rates to 0.5 per cent recently, making loan rates lower than before.
However, banks and other lenders have themselves come under severe financial pressure from the crunch, limiting their ability to boost the loan supply.
Sarah Robson, press officer at the CML, said: "It is important to point out that there is a gap in the market in the ability to supply mortgages at the moment to meet the demand as a result of the withdrawal of many lenders from the market."