First time buyers becoming part of the property ladder in the UK remain more of a pipe dream than anything else, as consumer confidence is still quite low.  Activity in the housing industry since the conclusion of the Olympic games for not only original loans, but remortgages as well, is still low.  As the winter months quickly approach and the sector goes into somewhat of a hibernation, many analysts are wondering what could help housing in general.

The Funding for Lending Scheme has made a difference for many borrowers attempting to purchase a house.  Although, the government-supported plan has not been as successful in regard to first time buyers.  Just over the past three months lending to borrowers with a low percentage of house deposit on hand has taken a major slide.

Original loans overall are also still struggling.  September saw only 47,600 purchase loans approved which is the third worst September in almost twenty years.  First time buyers made up the largest drop month to month.

Remortgages are possibly still an unturned stone for many with homeowners possibly not realizing the multiple benefits they can provide.  Not only is a remortgage able to free up much needed cash, but also instantly lower a monthly mortgage payment amount.

Richard Sexton, business development director of e.surv, commented on the current state of lending within the housing market.

He said: “The mortgage market has been struggling since June and is considerably weaker than it was this time last year. The period between August 2011 and May this year marked a real upturn in lending. But that fillip planted false hope. Since then, the effects of the double dip recession have sapped the confidence lenders have in the economy. That, combined with a squeeze on the funding lenders get from the money markets, has dragged down lending.”