Mortgage Market not to Stabilize Before 2010

An extremely dismal scene of the UK mortgage market has been predicted by the experts. The mortgage market will get smaller by almost 80 per cent and the price of houses will fall steadily in the coming 12 months. Experts will that the mortgage market will take time to stabilize and will not happen before 2010. To add to the sad numbers, one of Though pre-tax profits increased by 11 percent, the UK’s second largest Mortgage Lender claimed to have dealings only worth £1bn of mortgages in the last six months till September, while last year in the same period dealings worth £3.6bn were done. According to predictions, the mortgage market will do businesses worth £18bn in 2008 as compared to £90bn in 2007. Figures of 2009 are not positive either. House prices which are already lower than average this year, is expected to drop at a rate of 1 to 1.5 per cent per month every year till 2009. The mortagage market which reached its peak in 2007 has made a sharp fall hence forth by almost 14 per cent. A similar drop can be expected in the coming year as well. 2010 could be the stabilising year for the property sector. The average transactions of agencies were 10.9 this month while last month it was 11.5. A further drop is expected next year but the exact figure cannot be predicted as yet. Home owners are hard hit as 0.4 per cent of mortgage accounts are in arrears for more than three months. However, the larger concern that’s hitting all industries is job losses.

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