Mortgage lending set to fall according to National Homebuyers

The Council of Mortgage Lenders (CML) believes that mortgage lending levels are set to be down annually for some time as fewer buyers enter the market as they struggle with financial difficulties.

[ClickPress, Fri Dec 21 2007] According to the organisation, an uncertain market is likely to promote caution among buyers and lenders.

The recent global credit crunch is still having a huge effect and the CML forecasts that this will continue into 2008.

"October is the last month we expect lending volumes to be higher than a year ago as lenders and borrowers will behave more cautiously in an uncertain and slowing market environment," said Michael Coogan, director general of the CML.

"Lenders have already responded to the credit squeeze by tightening lending criteria and increasing some loan costs.

"And looking ahead, any uncertainty in the housing market may mean that borrowers are less willing to stretch themselves financially," he added.

The base rate of interest currently sits at 5.5 per cent, which could lead to financial difficulties for many people, some of whom are fighting to stop repossession.

Julian King of the UK's leading fast property purchase firm National Homebuyers adds, "Next year will not be the easiest year for homeowners who are already suffering from affordability worries.

"Those looking to sell their property to resolve the situation will also find that it's increasingly difficult to sell their home quickly on time and at the right price. A lack of buyers will make the sales process extremely difficult".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit