Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Mortgage market could suffer over next quarter

Mortgage market could suffer over next quarter

July 2, 2010 by Reno  
Filed under News, News-Mortgages

Leave a Comment

Over the past couple of years things in the mortgage market have been tough, and availability of mortgages has become very restrained as a result of the global credit crisis and the recession. This has left many people unable to get their hands on a mortgage loan, and has had a serious impact on the property market.

The Bank of England has now issued a warning stating that there could be fresh restrictions in the mortgage market over the next few months, blaming the tightening of wholesale funding for the expected squeeze on mortgages. This will create additional difficulties for those that are looking to get a mortgage, and will reverse the recent trend of increased availability of mortgages.

The data comes from the Bank of England’s Credit Conditions Survey, and a number of economists have also agreed that the availability and affordability of mortgages could fall over the next few months as banks struggle with tightened wholesale funding.

Over the past quarter the availability of mortgages has actually increase after a couple of years of serious difficulties, but this is something that is set to go into reverse according to the Bank of England. Figures have also shown that over the past quarter demand for mortgages has fallen even though mortgage availability has been increasing.

Dougald Middleton, head of capital and debt advisory at Ernst and Young, said: “While the survey shows that costs of borrowing have eased over the last quarter, we think credit conditions have turned over the last three or four weeks.”

The good news from the Bank of England report was that the rate at which mortgage borrowers and businesses were defaulting on loan took an unexpected fall, which will come as good news for banks.

Tags: Impact, mortgage, finance, Mortgage loan, demand

Tags:

Related Entries

  • Mortgage market in Scotland sees improvement
    • Recently released data has shown that the property and mortgage markets in Scotland have shown surprising improvement in the second quarter of this year, with officials expressing surprise over the figures that have been released
  • Are you hoping to get onto the property ladder this year?
    • Over the past couple of years first time buyers have been hit with a whole new problem. Following years of lack of affordability because of the sky high value of properties many first time buyers
  • Fool.co.uk: House price standstill could ‘imprison’ first-time buyers
    • Many first-time buyers may fail to sell their home at a price high enough to cover their mortgages if house prices begin to fall.Fool.co.uk states that people who have recently bought homes on 100 per
  • Mortgage approvals still slow
    • According to figures mortgage approvals in the UK for the start of this year have been sluggish despite optimism over improvements in the market. The Bank of England released data showing that the level of
  • Brits focusing on repaying their mortgages
    • Recently released figures have indicated that many Brits are now focusing on trying to repay their mortgage debts rather than accruing even more debt. In the third quarter of this year more money was ploughed
  • CML revises repossession forecasts again
    • It has been reported that the Council of Mortgage Lenders has once again cut its forecasts for repossession numbers in the UK, having taken more recent industry figures and market conditions into consideration. The group
  • Repossessions increase by 92 percent in a year
    • According to a recent report the number of homeowners that were losing their homes through repossession in the third quarter of last year rocketed by 92 percent. The figures showed that 13,161 properties were repossessed
  • Quarter 2 sees repossession levels fall
    • The second quarter of this year has seen repossession levels fall in the UK according to a recent report. Repossessions have been rocketing in the UK as a result of the global credit crunch and

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!