Lenders and intermediaries remain upbeat

Posted: 01 May 2008 12:23:24 GMT

It appears that many mortgage lenders and intermediaries remain confident about the prospects for the housing market in 2008.

It appears that many mortgage lenders and intermediaries remain confident about the prospects for the housing market in 2008.

A new study from the Intermediary Mortgages Lenders Association (IMLA) shows that 46 per cent of respondents expect to see house prices rise or remain unchanged this year.

Further to this, lenders and intermediaries said that mortgage borrowers are set for at least one more boost in 2008.

The majority of those questioned said that they anticipate seeing the base rate of interest drop to 4.75 per cent.

One respondent even forecast that the rate would be cut to just 4.25 per cent – requiring three more rate reductions before the end of the year.

"We are in a phase of readjustment in the markets, but that doesn't mean we're heading for a house price collapse or a recession," said Peter Williams, IMLA's executive director.

"We need to see more liquidity in the money markets, and the Bank of England's action in cutting Base Rate and in providing the £50 billion swap facility is a good start," he continued.

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