14
Dec
Lenders optimistic about 2008
Intermediary lenders have issued a positive outlook for the
property market in 2008, despite predictions of the impact of
turmoil in the financial markets.
Of the lenders surveyed by the Intermediary Mortgage Lenders
Association (IMLA), some two-thirds said they think remortgaging
will stay strong in 2008, with levels either increasing or staying
at their current level.
Peter Williams, executive director of the IMLA, said: "Lenders have
a realistic but optimistic perspective on the market, which will be
supported by good levels of remortgaging activity and a
reaffirmation of prudent lending practices.
"With credit quality moving up the agenda and key to the reopening
of the structured finance markets, lenders are tightening their
lending criteria with regard to both LTV ratios and financial
assessment," he added.
Nonetheless, the survey also revealed that lenders are seeking
further rate cuts, in addition to this month's quarter per cent
reduction, in order to restore confidence to the UK property
sector.
Mr Williams explained: "We believe the Bank of England has further
potential to reduce borrowing costs and increase confidence. While
Mr King and his colleagues must walk the tightrope between the risk
of a slowing economy and the threat of rising inflationary
pressures, we think the MPC can and should cut rates again,
possibly as early as in January."
