WRAPUP 1-UK housebuilders downbeat on mortgage drought

* Barratt says prices, volumes stabilise

* Lender valuations pushing prices lower

* Shares in Barratt down 3 pct, Redrow down 1 pct.

(Adds details, CEO, analyst comments, share price)

By Lorraine Turner

LONDON, July 9 (Reuters) - British housebuilders Barratt Developments (BDEV.L) and Redrow (RDW.L) on Thursday warned poor availability of mortgages was hampering sales, pushing shares lower in the sector.

A more positive spring selling season has buoyed the sector, lifting shares in British housebuilders .FTASX3720 by 12 percent since the start of the year as home buyers trickle back to the market.

But despite talk of green shoots in the battered sector, where house prices have lost a fifth of their value since the downturn, the fragile market is facing challenges such as mortgage availability, low valuations by lenders and rising unemployment. [ID:nL3435797]

Barratt, Britain's largest housebuilder by volumes, said sales and prices in recent months have stabilised, echoing comments from Persimmon (PSN.L) and Taylor Wimpey (TW.L). But it warned that any sustained improvement in trading is impossible until more mortgage finance is available. [ID:nL8703684] [ID:nL6258493] [ID:nLJ163707]