Money News
14th August 2008
Price falls not finance are dissuading buyers
Millions of Britons are still able to find mortgage finance but are opting to delay buying in anticipation of further house price falls, it has been discovered.
In a survey conducted by HSBC, some 98 per cent of house buyers said they had no problem arranging a mortgage.
However, of these, one in ten said they were deciding to delay taking out a home loan for at least six months, in the hope that they will be able to pick up property cheaper.
Meanwhile, 37 per cent said they did not want to buy while prices are expected to fall further and 36 per cent 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, naturally some feel uncomfortable buying a home which may be worth less in six month's time."
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