Council of Mortgage Lenders predicts mortgage rationing in 2009
The Council of Mortgage Lenders (CML) has today stepped into the breach and suggested that mortgage rationing will become more evident in 2009. The announcement has taken many by surprise as there were signs of increased activity and potential increases in liquidity in the mortgage market. However, the CML is closer than most to the industry and indications are that liquidity is set to dry up in 2009 and less mortgage approvals will be agreed.
This announcement is a bitter blow to the UK government who had started to see some light at the end of the mortgage tunnel in relation to liquidity and rates. There are suggestions that the downbeat CML report may act as a wake-up call to industry and the government and the fact that much more needs to be done to return the market to anywhere near its "normal" levels.
A further rationing of mortgage liquidity in 2009 will have a serious impact on the market itself and property prices could well come under further pressure. If the CML is correct we could see the situation in the UK property market get very much worse before it gets better. Watch this space...
Share this..
Related stories
General Motors decides to keep Vauxhall and Opel
Despite months of negotiations with various investors, General Motors has decided to retain ownership of its GM Europe division which includes Vauxhall and Opel. The Vauxhall operation in particular is vital to the UK economy with some 5000 jobs hanging on the outcome of this wrestle for ownership which is only that a very early stage. So what exactly is going on?
With over half of...
Are we approaching a crunch in worldwide oil supplies?
While for many people the subject of oil supply is something which will never cross their minds, more and more business leaders and economists are sounding the alarm bells about future oil supplies. There is a growing feeling that the worldwide supply of oil is in danger of falling below the level of demand. Indeed a doomsday forecast by a number of business leaders indicates that oil exploration...
Read MoreBradford and Bingley slash jobs to cut costs
While on the face of it this may look like a desperate move by the Bradford and Bingley at least it can be argued that they are not sitting on their hands watching 'Rome burn'. The move to cut 370 employment positions, mainly from the group's mortgage operations, is a step in the right direction and it is estimated that it will cut £15 million a year from its cost base.
However, j...
The eight Tory party economic benchmarks
Shadow Chancellor George Osborne has today issued eight Tory party economic benchmark measurements which he believes will allow those in the UK and around the world to measure the performance of the UK economy. One of the major pledges is to retain the UK's AAA credit rating which has been under a little doubt over the last few months because of the large budget deficit predicted for the next few...
Read MoreKraft Foods performs massive U-turn
Only days after grabbing control of Cadbury and seemingly looking to the UK to expand its manufacturing capabilities, Kraft Foods has performed a dramatic and very controversial U-turn. The company has this morning confirmed the closure of a Cadbury factory near Bristol with the loss of 400 jobs with production being transferred to Poland next year. This has caught the UK authorities, the unions a...
Read More