Friday, May 20, 2005

Mortgage Lending To Be Off 30% In The UK

In Britain, Nationwide has announced it expects much lower lending in the coming year. "Britain’s biggest building society has predicted that total mortgage lending would slump 30 per cent this year, from £100 billion to £70 billion, as the housing market slows."

"Philip Williamson said yesterday that the downward trend in house prices would have a knock-on effect in the mortgage market as homeowners became less likely to release equity from their homes. Prices would remain flat for two years."


At 7:39 AM, Anonymous Anonymous said...

Does anyone know what 2004 UK interest rates were, for the various types of loans, and whether or not they had the higher-risk types we have like LIBOR, I/O and stated-income? I thought that virtually all their mortgages were variable-rate, but that may be incorrect. Also, what was their percentage of speculator-bought homes last year? Comparing such stats to ours might help in forecasting the severity of our downturn.


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