Although many are seeking new low rate mortgages to help them avoid foreclosure, they are not having much luck according to financial experts. The current trends in the low rate mortgage market are very similar to the early 1990’s, which were a dark time indeed for the UK. Although many need a low rate mortgage, few banks are willing to offer these loans at this time as they seek to maximize profits.
Howard Archer, of Global Insight stated, “When looking at trends in the market, it is important to remember that UK house prices are 39% higher than five years ago. The current issue affecting the market is fundamentally about the supply of credit - a very different situation to the early 1990s, which was about high interest rates and unemployment.”
Bernard Clarke communications manager for the Council of Mortgage Lenders, said: “The figures are in line with our expectations and our revised forecasts. The CML expects house prices to go down by 7 per cent this year and the figures are consistent with our thinking. Our revising down of figures is not a collapse in the housing market as house prices have risen very strongly for 10 years.”
Related reading: Low Rate Mortgages
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