Underlying conditions for most mortgage borrowers are certainly more positive

Posted under General by Jermaine

The housing market experts are trying to work out the implications of the fact that prices continue to fall. According to a housing market expert, the market was very different to the scenario in the late 1980s and also early 1990s.

The underlying conditions for a majority of mortgage borrowers are certainly more positive than some would suggest,” another one said. Ms Earley, of the Nationwide, stated that the Bank of England’s (BoE) plan worked out for banks so that they could swap potentially risky mortgage debts for secure government bonds was well thought out.

The BoE plan is of £50bn, which gives an idea of the gravity of the situation, and the efforts being made to tackle it. She added it would help in stabilising the volatile mortgage market, but thought it would not lead to mortgage lending and house prices returning to the levels witnessed this time last year. She observed more people were on fixed-rate than variable rate mortgage deals unlike the 1990s crash and this helped the stability of the market to some extent.