Over the past few years, many used self certified mortgages to get a new built home, but now that these loans are no longer offered in large numbers, builders are feeling the pinch. The amount of self certified mortgages that are going into default continues to climb however, and it is clear to many experts that this correction was most likely necessary since many did not state their incomes truthfully.
Oliver Gilmartin, the senior economist at RICS stated, “Financial pressure on housebuilders amid a dearth of transactions will see marginal projects put on hold for the time being, sending Government housebuilding targets further into the wilderness.”
“Housebuilding is set to fall below 100,000 over the next year with a rapid policy rethink necessary if 3m homes are to be built by 2020. To reduce the excesses of the boom-bust cycle, a more sustainable approach to housebuilding through the bad times needs to be enacted.”
Michelle Slade, an analyst at the finance site MoneyFacts, said: “Over time the mortgage market should continue to improve from its current position. The number of products will steadily increase and rates will lower with increased competition between lenders.
Related reading : Self Certified Mortgages
