Mortgage market to pick up with renewed funding, CML says

Posted: 13 Feb 2009 09:33:31 GMT

Britain's 'mortgage landscape' has shifted considerably over the past 12 months, though steps are now being taken to inject some stability into the market, it has been claimed.

New figures released by the Council of Mortgage Lenders (CML) show that demand for tracker mortgages has increased markedly over recent months as borrowers look to take advantage of falls in the base rate of interest.

Indeed, according to the organisation's new report, tracker mortgages now account for around one in three products being taken in the UK, while the size of deposits needed by first-time buyers increased to the highest point in 34 years in December, with buyers now needing to put down around 25 per cent of a home's value up front.

Despite this ongoing lack of cheap mortgages, CML director general has stated that measures are now in place to restore the flow of funding into the market.

"Further action may still be necessary to increase transactions, stabilise prices and restore confidence," he added.

Meanwhile, the Financial Services Authority has issued new advice for borrowers struggling with their mortgages, though the CML has stated that repossession rates will be lower than expected over the coming months.

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