Current mortgage supply does not meet demand due to the recent withdrawal of foreign lenders and specialist providers, the Council of Mortgage Lenders has said.
The recent withdrawal of several foreign lenders from the UK mortgage sector has left a potential gap in the market, with consumers struggling to find home loans, the Council of Mortgage Lenders (CML) has said.
Demand currently outstrips supply in the UK, with property owners unable to take advantage of some deals which were previously supplied by specialist providers.
Sarah Robson, press officer at the CML, explained that the gaps left in the market by this withdrawal may not be able to be filled by government lending commitments or other measures designed to boost activity.
"We don't expect to see an upturn in that until later on in the year," she said.
"It is important to point out that there is a gap in the market in the ability to supply mortgages at the moment to meet the demand as a result of the withdrawal of many lenders from the market. These lending commitments can only do so much to plug that gap; they are not going to plug it completely."
The latest lending figures from the CML found that 23,400 mortgages were completed in January, with 8,900 approved for first-time buyers. This was a respective drop from 32,400 and 12,200 in December 2008.
