Mortgage lending will fall flat, says CML

Posted: 03 Dec 2008 12:28:48 GMT

The chance that banks will be able to maintain even the low rate of mortgage lending experienced this year will be slim in 2009, the Council of Mortgage Lenders (CML) has hinted.

Instead, banks will face significant problems getting their hands on the money required to lend to consumers, the CML has pointed out, and without government intervention the mortgage market could act in such a way that prices will plummet through an enforced lack of demand.

Michael Coogan, director general of the CML, stated that: "Consumer borrowing will simply not return to the levels seen in 2007, even if funds increased and a wide variety of lenders were to become active in the mortgage market again.

"In fact, unless government takes further targeted action to help market participants, we will see a worsening of the picture next year compared to this."

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