UK mortgage market lacking confidence

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Recent events in the mortgage market and wider financial world have severely dented confidence among potential residential home owners and landlord investors, while estimates from the Chancellor in his Pre-Budget report of lower growth have done little to remedy the situation.

So claims the Intermediary Mortgages Lenders' Association (IMLA), which said, however, that conditions in the mortgages market are stable and will now slowly return to normal.

Peter Williams, executive director of the IMLA, said: "The turmoil in the financial and mortgage markets was attributable not to an actual problem with the credit quality of UK mortgage books, but concerns among investors that UK lenders could encounter the same problems as have occurred in the US.

"That ignored the fact that the credit quality of UK mortgages remains very good," he added, going on to point out that latest data from the Council of Mortgage Lenders showed that just 1.06 per cent of mortgages from the last three months are in areas.

According to the CML, residential mortgage and remortgage lending in August fell by 11 per cent and 12 per cent respectively compared to last year, but lending across the total mortgage market remained little changed from July because of 37 per cent growth in buy-to-let lending to new and expanding landlords.

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