The dramatic slowdown in the UK property market cannot be attributed to a lack of mortgage finance, according to HSBC.
In fact, 98 per cent of would-be buyers of older and new homes can secure an appropriate mortgage but are not prepared to do so because of concern over house prices.
According to the Halifax, house prices fell by an average of 8.8 per cent over the year to July.
It is this which is preventing the market from stabilising, rather than unwillingness among mortgage providers to lend money.
"There is a perception at present that banks are not offering mortgages," remarked Martijn van der Heijden, HSBC's UK head of mortgages.
"In fact, our latest study suggests that access to finance is not a major issue."
But a study by MoneyFacts.co.uk shows that the number of mortgage products available to buyers has fallen sharply in the past 12 months.
See Also: Property News (5994)
Date Published: 14 August 2008
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