30
May
Mortgage problems will not be as severe as the 90s, CML says
The current conditions in the housing market will affect current
homeowners, but the impact will not be as severe as was seen in the
early 1990s, a spokesperson for the Council of Mortgage Lenders
(CML) has suggested.
Bernard Clarke explained that although the level of mortgage
arrears and possessions is expected to rise this year, the effects
will not be "as bad as some other commentators are
predicting".
He cited a mixture of increased home loan costs and "disruption to
income streams" as factors that are putting pressure on
homeowners.
At the same time, Mr Clarke said that some issues with repayment
are always likely to crop up, regardless of the economic
climate.
"There are always some people who are suffering payment problems
[because of] changes to their circumstances," he noted.
Research from insurance company AXA indicates that nine out of ten
single-earner families hold mortgages.
