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Mortgage slow-down expected as prices rise

October 6, 2007 by admin  
Filed under News, News-Mortgages

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A slow down in the market is forecast as a result of rising mortgage prices, according to Andy Hornby, head of HBOS mortgage lender.

He warned that property owners were at risk from the fluctuations to the mortgage market and predicted that concerns regarding these changes could end in homeowners having to spend more on mortgage repayments.

Speaking to a Merrill Lynch banking conference in London yesterday, he said: “I suspect that the mortgage market is about to undergo a fundamental shift. Over the past three years we’ve seen a major decline in mortgage margins.”

He added that mortgage cost adjustment would continue on the back of “wholesale funding costs”.

Lenders’ rate increases have been widespread in the UK following the sub-prime mortgage crisis, causing anxiety for those considering taking out a loan on a house, many of whom decided not to, according to National Homebuyers.

HBOS is a retail, business, corporate banking, investment and insurance services company. It is the UK’s biggest mortgage and savings provider.

Tags: market, United Kingdom, National, conference, HBOS mortgage lender.He, Mortgage loan, provider, retail

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