Whilst getting a mortgage is not a problem for many, the home buying market is slowing sharply because people expect house prices to fall further and are not confident in their ability to fund a new property as the cost of living, including mortgages rises, according to HSBC.
HSBC’s study found that one in 10 Britons are keen to move house or get on the housing ladder, but have decided hold off for at least six months. Of these ‘delayers’ just 2% said they had difficultly getting a mortgage, but 37% said they did not want to buy while prices are expected to fall further and 36% said they were worried about the rising cost of living.
Martijn van der Heijden, HSBC’s UK head of mortgages said: “There is a perception at present that banks are not offering mortgages. In fact, our latest study suggests that access to finance is not a major issue. Instead, many buyers are taking a wait and see attitude and naturally some feel uncomfortable buying a home which may be worth less in six month’s time.”
