8
Feb
Credit crunch 'not serious harming mortgage borrowers'
Mortgage borrowers have been less affected by the effects of the
credit crunch than expected, according to the Intermediary Mortgage
Lenders Association (IMLA).
The organisation said it is "reassuring "that the number of
homeowners falling into arrears and at risk of repossession are
"below the projected levels".
Despite adverse conditions in the global liquidity markets, credit
quality remains on the positive side.
Godfrey Blight, chairman of IMLA, said:"UK mortgage borrowers have
been less affected by the fall-out of the credit crunch than some
commentators had predicted.
"For all the negative sentiment in the media, unemployment and
interest rates remain low and people are taking the wise precaution
of cutting back on discretionary expenditure."
Arrears and possessions are expected to rise but will remain "well
below the peaks of the 1990s", the IMLA forecasts.
According to figures from the Council of Mortgage Lenders, less
than one in 400 mortgages resulted in repossession last
year.