CML: House prices not affected by mortgage shortage
October 27, 2007 by admin
Filed under News, News-Mortgages
The reduction in the availability of mortgage products is unlikely to affect house prices.
According to the Council of Mortgage Lenders (CML), the sub-prime sector is most likely to be affected and this would have only a minimal impact on the housing market in the UK.
Bernard Clarke, a spokesperson for the CML, explained: “The housing market continues to be underpinned by consumer demand for owner occupation, strong aspirations for owner occupation and there’s a shortage of supply.
“Those fundamentals will continue to underpin the market to a much greater extent than any shortage of mortgage products to customers.”
He added that despite fluctuations, uncertainty and speculations over a possible collapse, there remains confidence in the market.
Moneyfacts has recently revealed that the availability of buy-to-let and residential mortgage products has reduced by 40 per cent in the last few months.
Furthermore, 72 per cent of bad buy-to-let mortgage products were taken off the market as well as 54 per cent of bad credit residential mortgage products.
