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Mortgage squeeze not letting up

September 8, 2008 by admin  
Filed under News, News-Mortgages

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The mortgage squeeze in the UK doesn’t show any signs of easing according to officials in a recent report. Officials from the Council of Mortgage Lenders have recently said that the problems in the mortgage market do not seem to be letting up, and tighter credit and lending conditions are still very much in place. The problems in the mortgage sector began last summer with the arrival of the global credit crunch, and since this time the number and availability of mortgages has fallen rapidly.

Since the onset of the global credit crunch the financial markets, including the mortgage industry, have been in chaos, and both industries in the financial sector and consumers have suffered as a result. In addition to the availability of mortgages being vastly reduced since the global credit crunch house prices have also been falling, and the level of property sales has plummeted with estate agents reporting extremely poor sales figures and the risk of many losing their jobs due to the state of the market.

Over recent months the Bank of England has been ploughing money into the financial markets in order to ease liquidity, and has also launched a £50 billion mortgage rescue plan.

However, officials from the Council of Mortgage Lenders state that the plan still has to take effect, with one official stating: “The next few months will remain very weak for house purchase activity for the funding reasons which are now well rehearsed. We still await first signs of the Bank of England’s special liquidity scheme indirectly helping to ease the current logjam.”

Whilst the mortgage rescue plan put into place by the government has been welcomed by the financial and mortgage industries, a number of officials have said that it could take some time to take effect, which means that the mortgage sector could continue to suffer for quite some time before things start to show signs of recovery.

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Tags: mortgage industries, tighter credit, order, plan, financial markets, mortgage market, Subprime mortgage crisis

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  1. UK economy in worse shape than imagined says:
    September 8, 2008 at 4:16 pm

    [...] Mortgage squeeze not letting up [...]



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