8 Feb

Credit crunch 'not serious harming mortgage borrowers'

Credit crunch 'not serious harming mortgage borrowers'

Mortgage borrowers have been less affected by the effects of the credit crunch than expected, according to the Intermediary Mortgage Lenders Association (IMLA).

The organisation said it is "reassuring "that the number of homeowners falling into arrears and at risk of repossession are "below the projected levels".

Despite adverse conditions in the global liquidity markets, credit quality remains on the positive side.

Godfrey Blight, chairman of IMLA, said:"UK mortgage borrowers have been less affected by the fall-out of the credit crunch than some commentators had predicted.

"For all the negative sentiment in the media, unemployment and interest rates remain low and people are taking the wise precaution of cutting back on discretionary expenditure."

Arrears and possessions are expected to rise but will remain "well below the peaks of the 1990s", the IMLA forecasts.

According to figures from the Council of Mortgage Lenders, less than one in 400 mortgages resulted in repossession last year.ADNFCR-1222-ID-18460903-ADNFCR

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