Mortgage lenders willing to offer loans, BOE

Bank of EnglandThe Bank of England said yesterday that the trend in during the economic slowdown when home buyers were unable to obtain loans has passed and the mortgage lenders are now increasingly willing to offer home loans in the country.

The central bank said that the banks and building societies are showing willingness to lend to home buyers in the country including first-time buyers and people moving home. The central also said that the borrowing will become even easier during the next few months. The Bank's report shows that the market conditions had improved as lenders are now willing to offer loans compared to the previous six years when lenders were very cautious about handing out loans.

Experts have said that lenders have also started lending to people who have a small deposit for the property. Unlike earlier years, when the people had to make a deposit of 25 per cent, at present buyers can get loans by only depositing 10 per cent or even lower due to the backing form successful government schemes.

Prime Minister David Cameron said, "Too many people have found themselves frozen out of the market in recent years as a result of the deposit required. That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hard-working people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home."