Mortgage borrows need reassurance about the market

Published: November 26, 2007

Mortgage borrowers need to be reassured that the market in the UK is stable and that lenders are financially secure, an industry expert has said.

Chris Cummings, director of the Association of Mortgage Intermediaries (AMI), said that consumer confidence was often the first thing to be affected during economic slowdown.

He explained: "Mortgage lenders and mortgage intermediaries are in the same market and we need to support each other.

"Ultimately, borrowers need reassurance that the lender is robust, and they will look to the intermediary to provide that reassurance.

"We are aware that there are robust lenders who are experiencing temporary difficulties due to the credit crunch. We are confident that they will be back strongly as the market picks up."

Recent figures from the British Bankers' Association (BBA) indicated that mortgage lending rose very slowly in October and that approvals, particularly for house purchase, were significantly lowerin the month that they had been previously.

BBA statistics director David Dooks said: "October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing."