5
Oct
Mortgage market 'to ride out crisis'
The Council of Mortgage Lenders (CML) has reiterated its confidence
in the UK mortgage in the face of problems in the US sub-prime
market.
The CML's move comes after the International Monetary Fund last
month issued a warning that the state of many of the UK’s
sub-prime mortgages left the market looking vulnerable.
A statement from the CML said: "UK housing and mortgage markets
have proved resilient in the past and there are a number of factors
likely to prove supportive once the dust settles."
The CML also played down reports that as many fixed-rate deals come
to an end, the mass transfer to a standard variable rate would see
a raft of repossessions in the UK market.
"We have not seen risk layering or teaser rates being discounted to
the same extent as in the US, so the payment shock from coming off
fixed rate deals will not be nearly as severe," the council
added.
