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Mortgag demand slows

Marlon Madden

Mortgag demand slows

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THE DEMAND for private dwelling mortgages in Barbados has slowed down in the past year due to the ongoing recession.
Clive Newman, Butterfield Bank’s senior manager of commercial and customer lending, told BARBADOS BUSINESS AUTHORITY that while there was still some demand for mortgages, it had “slowed considerably”.
“We believe the demands have slowed down somewhat over the past year, which we expected somewhat with the recession and people tightening their belts. . . . They tend to go after the $220 000 to $350 000 range.
“And we do see the more wealthy individuals with the $1.2 million and $1.5 million spend on property,” he said, adding that more couples were borrowing.
Newman said the bank was seeing “quite a few” professionals seeking mortgage loans, mostly in the middle-income range.
“We see mostly the monthly-paid individuals moreso than the businesspeople and entrepreneurs,” she pointed out.
Barbados Mortgage Finance manager Lorna Cumberbatch said there had been no noticable change in demand. She said most people seeking mortgages from the Barbados National Bank subsidiary were in the upper and lower middle-income range.
“I have some clients going after $500 000, that would be middle income, then I have $175 000 to $200 000.
“We don’t get too many professionals because they would be looking for much larger mortgages,” she said, and most mortgage requests were from women.
In September 2009, the assets of trust and mortgage finance companies for private dwellings stood at $467.40 million compared to $457.837 million in the same month the previous year. (MM)