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CML: Mortgage lenders to feel the squeeze

November 22, 2007 by admin  
Filed under News, News-Mortgages

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Mortgage lenders will feel the pressure of the credit crisis on the market, the Council of Mortgage Lenders (CML) has said.

The CML warned that this “testing time” is yet to come despite gross mortgage lending being up in October, standing at £32.4 billion.

Furthermore, the Building Societies Association (BSA) has revealed that £4.65 billion was lent for mortgages last month, down significantly on last year’s figures for October.

The BSA also reported the highest ever savings levels last month.

CML director general, Michael Coogan, commented: “The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy.

“Funding constraints will continue to restrict lending activity and make loans more expensive.”

The Inflation report recently published by the Bank of England added to speculation that rates may fall, which Mr Coogan explained “should provide some relief for borrowers sooner rather than later”.

Tags: gross mortgage lending, wider economy, economy, lending, Mortgages, report

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