CSR may 'make borrowers cautious about mortgages'

26 October 2010

Written by Gavin Elley

The Comprehensive Spending Review may cause people to be "cautious" when considering taking out a commercial mortgage, it has been suggested.

Bernard Clarke, spokeman at the Council of Mortgage Lenders (CML), explained how some individuals are likely to have followed the report and assessed its impact on whether they will be approved.

The British Bankers' Association recently stated that new mortgage approvals fell to 31,104 in September from 31,781 the previous month.

Despite the decline, Mr Clarke commented that the CML is not too concerned by monthly reports as there are often variations in such a time frame.

Elsewhere, he predicted that remortgaging deals would see some improvement as there has been a resurgence in attractive arrangements being launched.

"There appear to be some lenders being more active in the market and offering some more competitive [deals]," the expert stated.

However, those with a reasonable amount of equity in their property and appearing to be the lowest risk will probably be the only ones to benefit from the best options, Mr Clarke commented.

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