Mortgage crisis 'has two years left'

The UK mortgage market may still have another two years of being constrained, it has been suggested.

Simon Preston, chairman of online change of address service iammoving.com said that the limitations on the availability of mortgagefinance are "likely to continue for at least the next couple of years."

He added: "The truth of the matter is that the housing market is being severely constrained by the lack of mortgagefinance."

Such a situation could prompt some to seek to self build their homes rather than struggle to get the mortgagefinance required to buy one.

For those in existing homes the mortgage problem may make renovation a better option.

Yesterday's Council of Mortgage Lenders figures for July showed the volume of gross lending had dropped by 27 per cent in a year.

Responding to this, Liberal Democrat Treasury spokesman Vince Cable claimed this was evidence that the market is in "freefall".