Lending to remain tight for 2011
THE Council of Mortgage Lenders is forecasting the lowest levels in lending for 30 years in 2011.
The CML says: “From April next year onwards, lenders will begin to have to repay the funding advanced through official support schemes. This is likely to limit the availability of credit to support mortgage lending next year and beyond.”
The CML is predicting 0.86 million housing transactions next year, down from this year’s estimate of 0.89 million. It thinks the number of loans will shrink to £6bn, down from an estimated £9bn this year. It also thinks that arrears will climb from 175,000 to 180,000 and that repossessions next year will creep up from 36,000 to 40,000.