2008 mortgage outlook not all bad

Posted: 31 Jan 2008 17:22:46 GMT

The outlook for the mortgage market in 2008 is not as bad as some analysts would have us believe.

The outlook for the mortgage market in 2008 is not as bad as some analysts would have us believe.

That is according to the Council of Mortgage Lenders (CML), which pointed out that the negative trend witnessed towards the end of 2007 will not necessarily continue.

"We should not assume without question that recent trends will continue. And there are one or two glimmers of light," read a CML statement.

"First-time buyers are accounting for a larger share of recent enquiries. Stable to slightly softer prices, and improved prospects of finding a bargain, might help to put a floor under the interest of those looking to enter the market, particularly as supply remains tight in many areas.

"Another reason not to overdo the pessimism is that interest rates are falling… policy remains restrictive, and has been made more so by the tightening in credit conditions. The wider risks to the economy mean that the trend in rates will almost certainly be down this year, and this is priced into market rates," it continued.

Aside from the downturn towards the end of the year, the CML pointed out that 2007 was a hugely successful period, with gross mortgage lending reaching record levels.

© Houseladder Ltd