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Mortgage market to recover, according to adviser
10 June 2008
Once liquidity returns to the mortgage market then the housing market will begin to recover, according to a financial adviser.
While the credit crunch has meant that homeowners have struggled with higher mortgage payments, the Bank of England will not allow mortgage rates to continue being so high, claims Peter O'Donovan from Betinvest.
Peter O'Donovan, head of mortgages at Bestinvest said: "It may not return to what it was six months ago but, once the liquidity has shifted back into the market and top rates return back towards where the base rate level is, then more companies will start to relax their [lending] criteria."
As soon as lenders relax their lending criteria, mortgages will be easier to arrange and the housing market will be revived.
"For first-time buyers the market will start to become affordable to them again," said Mr O'Donovan.
There are to be around 35 per cent less house sales in England and Wales than last year, according to predictions by the Council of Mortgage Lenders.
