Mortgage market 'will take time to recover'

Mortgage lending will recover in time, but it is likely to remain at current levels of decline for the next few months, one lender has claimed.

Timothy Lambert, head of consulting at Ducalian, was commenting after the Council of Mortgage Lenders reported that gross lending declined by 32 per cent last month.

He claimed that there is uncertainty in the market for a number of reasons, meaning it will take a number of months for the outlook to show any major improvement.

Mr Lambert commented: "After the worst recession in decades, which was exacerbated by excessive and unscrupulous lending in the states; mortgage lenders have now been given obligations to lend more, but are also being careful about who they lend to."

He said that while the economy is showing growth, it is still "very fragile" and this is reflected by the lack of confidence shown by lenders.

As the UK records higher gross domestic products readings, the availability of cheap mortgage rates may improve, he suggested.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-02-22 14:31:01 © Moneyextra.com