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Mortgage market to recover slowly
09 May 2008
Mortgage lenders have warned that the mortgage market may take some time to recover from the effects of the credit crunch.
According to the Building Societies Association (BSA), the mortgage market may take up to two years to get back to normal after being severely damaged by the current economic climate.
Speaking to BBC Radio 4's Today programme, Ian Cornish chairman of the BSA said: "I don't see things getting any worse from here but I do expect it will take 18 months to two years for confidence to return fully and work its way through the system."
Due to the credit crunch mortgage providers have avoided risky lending by either restricting their mortgage products or withdrawing them completely, the Bank of England revealed that mortgage lending had halved since last year as a result.
Abbey became the latest mortgage lender to reduce its product range when it withdrew from the 100 percent mortgage market last week.
