CML predicts rise in mortgage payments problems

19/12/2008

Half a million UK homeowners will be in arrears on their mortgages at the end of 2009.

This is the forecast contained in a new report from the Council of Mortgage Lenders (CML).

The study also said that overall mortgage lending in November fell by 51 per cent, when compared with November 2007.

According to the CML, the property market will remain "subdued" as the economy continues to struggle in the year ahead.

Job losses and restrictions on cheap loans will help to push up the number of those in arrears.

CML director general Michael Coogan suggested that he was hopeful for the future, however.

"Recent glimmers of light in terms of government intervention to improve conditions to support new lending are helpful, but more will be needed," he said.

"2009 will be a challenging year, but borrowers who remain in employment will see some benefits in the form of lower mortgage rates."

Tags; Housing Debt and Bills, Young Family Finances,

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