Mortgage lenders in the UK need to change their current attitude and practices if the housing sector is to recover, it has been claimed.
The online home moving service Moveme.com has suggested that lenders are being excessively cautious and leaving borrowers with debt problems little room for manoeuvre.
According to the company, financial services firms ought to pass on interest rate cuts as they are introduced by the Bank of England in order to breathe life back in to the property market.
"The continued, overly cautious approach now being employed by lenders is having a detrimental impact on the market," said Charles Warsdell, Moveme.com’s director.
"It will be interesting to see how long lenders can hold out before their current stance brings about their own downfall," he added.
In related news, the Council of Mortgage Lenders recently insisted that its members only initiate repossession proceedings as a last resort.