Market not mortgages putting off homebuyers Published: 15/08/2008

British homeowners are not moving because they do not have confidence in the property market, according to new research.

A study by HSBC found that 98 per cent of prospective buyers do not have a problem arranging a mortgage.

However, the property market is faltering because the current housing market situation and the credit crunch are putting people off purchasing a new home.

Homeowners do not feel they will be able to afford the rising cost of living or the rising cost of mortgages.

One in ten consumers want to move house or buy their first property, but have chosen to wait for at least six months while the market recovers.

Some 37 per cent of people said they would not purchase a different property because they think prices are still falling.

Martijn van der Heijden, head of mortgages at HSBC, 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."

He said that many buyers are instead adopting a "wait and see" attitude before buying another property.

Mr Heijden added: "Almost one in four buyers think they might struggle to get a mortgage, however just one in fifty has actually given up on their purchase due to failing to find a suitable loan. Anyone keen to buy a home still has an extensive range of mortgage options. Lenders like HSBC, who have traditionally taken a responsible approach, have continued to lend at competitive rates and will continue to do so."

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