5 Oct

Mortgage market 'to ride out crisis'

Mortgage market 'to ride out crisis'

The Council of Mortgage Lenders (CML) has reiterated its confidence in the UK mortgage in the face of problems in the US sub-prime market.

The CML's move comes after the International Monetary Fund last month issued a warning that the state of many of the UK’s sub-prime mortgages left the market looking vulnerable.

A statement from the CML said: "UK housing and mortgage markets have proved resilient in the past and there are a number of factors likely to prove supportive once the dust settles."

The CML also played down reports that as many fixed-rate deals come to an end, the mass transfer to a standard variable rate would see a raft of repossessions in the UK market.

"We have not seen risk layering or teaser rates being discounted to the same extent as in the US, so the payment shock from coming off fixed rate deals will not be nearly as severe," the council added.

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