Mortgages Uncovered

The Council of Mortgage Lenders (CML) has released a grim report concerning the prospects of the British housing market, confirming and even exacerbating the fears of many analysts and would-be buyers.

CML are very well respected in the industry and so despite their somewhat gloomy report their predictions and analyses are considered accurate. The group believe that there will be a 7% fall in property prices with as many as 35% fewer transactions on last year.

The one ray of sunshine in CML’s report was that they did not forecast a rise in repossessions of houses in 2008, stating that people coming off of fixed rate mortgage deals have been dealing quite well with changes in modes of payment.

It seems that CML’s report predicts a possible rock bottom in the housing market in 2008 followed by low level consolidation at the start of 2009, providing there are no more drastic movements in the market and wider economy.

All that said, these predictions may change once again if the UK’s sub-prime mortgage market continues to suffer as it has been causing more homeowners to struggle to meet their mortgage repayments on time.