18 Dec

Mortgage markets conditions 'are steady'

Mortgage markets conditions 'are steady'

Although gross mortgage lending registered a ten per cent fall in November, according to the latest Council of Mortgage Lender (CML) figures, the organisation remained upbeat and described conditions in the market as "steady".

It stated that a "modest seasonal decline" between October and November is usual and predicted that the market will change little over the coming months.

CML economist Paul Samter commented that while there will not be a quick recovery in mortgage lending, the sector is displaying some encouraging indications.

"There has been a modest increase in the availability of mortgage credit recently, including some tentative signs of a few higher loan-to-value products emerging," he said.

Earlier in December, the CML stated that borrowers are favouring standard variable rate and tracker mortgages over fixed-rate products due to the low-interest environment in the financial sector.

Figures released by the Financial Services Authority revealed that the number of households with mortgage arrears of more than 1.5 per cent of the balance had decreased slightly in the third quarter of 2009, compared with the previous three months.

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