Thursday, 15 December 2011

Mortgage drought to get even worse

The Council for Mortgage Lenders has switched from expecting a recovery in lending next year to forecasting a sizeable drop -- as  a result of the Eurozone crisis and the poor economic outlook.

Lending this year is expected to add up to £138bn, not including the mortgage money borrowers pay.

But while the CML's summer forecast was that the figure would jump to £150bn in 2012, now it is warning that a fall to £133bn is on the cards.

The CML is sticking to its view that repossessions will rise to 45,000 in 2012, up from an estimated 37,000 this year, though still fewer than in 2009.

House sales are expected to slip further into the doldrums, with transactions expected to fall to 825,000 from 852,000, the lowest figure for approximately 40 years.

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