Intermediaries unable to lend

Legal and General Mortgage Club has said that there is a shortfall of products in the mortgage lending market.

The comment comes after the Intermediary Mortgage Lenders Association claimed that 79 per cent of firms are unable to help a standard borrower.

LGMC managing director Ben Thompson said: “This goes to highlight the shortfall of viable products available in the market at the moment, especially for first time buyers.

“Whilst rates have reached historic lows, lenders are still only looking to attract the ‘ideal’ customer or those with large deposits and low risk attached. This policy is leaving a large section of the market un-catered for as they do not meet the criteria necessary to secure these products.

“For every £1 spent on housing, around £2.80 is generated in the economy and a ‘bottom-up’ stimulus in the housing market from FTBs is exactly what the UK economy needs. Whilst lenders are introducing increasingly competitive products, these need to be made available to the borrowers who are currently struggling to secure lending.  Whilst sensible lending is necessary, lenders need to compete further up the risk curve to really get the market going again.”