(1888PressRelease)
June 02, 2007 - Although data released by the Council of Mortgage Lenders (CML) shows gross mortgage lending in April was down nine per cent on March levels from £31.7 billion to £28.8 billion, the CML estimates that should the figures be seasonally adjusted a consistent level of lending in the first four months of the year would be discovered.
However, the market is set to slow, the CML says, following a further interest rate rise in May.
This latest hike has impacted heavily on demand as consumers are struggling to cope with mounting mortgage costs, with a raft of repossessions being predicted as a result.
"Lending is still strong, but it does seem to be stabilising in 2007 following its major growth in 2006," CML's director General Michael Coogan said.
"With higher interest rates now beginning to have an impact, the modest slowing in activity that we have been expecting over the rest of the year looks set to materialise."
Julian King, director of fast sale property firm National Homebuyers says: "Is it really any surprise that the market is slowing?
"With the CML now, conservatively, claiming that there will be a market slowdown, homeowners really have to think about what will happen to the value of their property over the coming year.
"We have been predicting the domino effect of these indicators for sometime: the introduction of Hips; the increase in repossessions; the slowdown in consumer spending; the increasing number of interest rate rises; the augmenting problem of a lack of first time buyers and the necessity of mortgage lenders to offer eight times salary - this is all pointing to a horrendous situation for the homeowner in the not-too-distant future."
National Homebuyers is the UK's leading firm which specialises in quick property sales. They purchase properties quickly and withiut the need for a Hips pack. They are also able to offer an Equity Release solution called 'sell and rent back', which allows the vendor to sell their home for up to 100 per cent of market value and rent it back for as long as suits.
The company can be contacted
on 0870 979 8118
or by visiting their website,
www.nationalhomebuyers.co.uk/index.asp.
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