30 May

Mortgage problems will not be as severe as the 90s, CML says

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.
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