3 Feb

Affordability concern is dropping, survey finds

Affordability concern is dropping, survey finds

The number of people concerned about being able to afford a mortgage has been found to be dropping.

According to the Building Societies Association (BSA), falling interest rates have meant that borrowers are less concerned about being able to meet their payments.

The body's Property Tracker survey showed that this was a barrier to buying a home for 70 per cent of people in June 2008, but the figure dropped to 37 per cent by December.

Director general of the BSA Adrian Coles noted that fluidity is now a more pressing concern and he called for measures to allow a greater flow of lending.

He urged the Bank of England to maintain interest rates this week in order to ensure savers continue to provide money, stating: "A further reduction … will make people even less likely to save and disrupt further the flow of funds into the mortgage market, which is already significantly short of lending potential."

The Bank's official base rate has fallen from five per cent in September to its current level of 1.5 per cent - making mortgages cheaper for many borrowers.
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