Council of Mortgage Lenders' Warning

[CoverItAll]

Liquidity in the mortgage market may not return to what brokers would perceive as normal until the end of 2009. That was the bleak warning today from the Council of Mortgage Lenders in a seminar at the Mortgage Business Expo Manchester.

Jackie Bennett, head of policy at the CML, says: “It may be another 18 months before the funding position recovers completely and perhaps never for the securitisation market.”

Bennett adds that this was not necessarily a death knell for the sub-prime market, although it remains uncertain as to how things will pan out in this sector during the coming months.

She adds: “There will still be people with credit problems and there will be a market for those at the margins.”

Even when funding issues have been largely resolved, Bennett says the range of heavy adverse products in the market may remain restricted, while borrowers would probably have to get used to paying a deposit of five or 10%.

[SASASA]

Hi CIA

I'm not having a dig at you CIA, but it really bugs me when the big noises in the world of finance constantly cry that the sky is falling.

My understanding is that the current climate will provide a challenge for many in IVAs that have a year four equity release clause. The prospects of obtaining a re-mortgage to offer a one-off full and final settlement in IVA have all but dried up. But it shouldn't really be that much of a problem if lenders keep to realistic lending criteria.

It might help significantly if subscribers to the board could post their experiences with re-mortgaging issues - successful or not.

Back on me 'ead.

SASASA

[CoverItAll]

Hi SASASA

At the Frugal Friends meeting last Saturday, Melanie Giles gave uw the GOOD NEWS that her recent experience was that when a year 4 Re-Mortgage\ was not possible, Creditors were simply accepting this, and were not asking for another year to be added to the IVA.

[SASASA]

Hi CIA

That is good news. I hope it spreads quicker than some of the more recent doom and gloom and that such common sense commercial mindedness filters through to the likes of Tix, HSBC, Northern Rock, Student Loan...I could go on!

Best

SASASA