The research, which included high street banks, building societies and specialist prime and non-conforming lenders, showed that of those who said that they were seeing an increase in shortfalls, 100% thought that they were arising more frequently compared to a year ago, with 56% indicating house price cooling as the principal factor, whilst 44% indicated high loan-to-value as the reason.
Paul Walshe, head of lender services, Moore & Blatch, said: “The constant increase in house prices has lulled people into a false sense of security. The recent cooling off of property prices in the market means that buyers are now being left in a vulnerable position. Buying a property is a risk-based investment and people need to allow for fluctuations in the market.”
