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Chelsea Building Society cut its rate of lending to first-time buyers last year despite increasing buy-to-let mortgages by 64 per cent, according to data released.
The mortgage lenders results for 2007 show how providers are handling the credit crunch.
Chelsea’s net mortgage lending was £1.35 billion – exactly the same as 2006, despite falling numbers of first-time buyers being issued mortgages. This is because of a hike in buy-to-let lending, which soared to £1.1 billion, reflecting the "continuing investment appeal of the UK property market", Chelsea explained.
Richard Hornbrook, director and chief executive of Chelsea, said the slump in confidence experienced at the end of 2007 looked set to continue this year.
He said: "The outlook for 2008 remains uncertain, with demand for residential mortgages expected to fall. Obtaining funds, whether from savers or from the wholesale markets, is likely to prove increasingly competitive and relatively costly."
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