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Expert: Mortgage market will recover, but slowly

Monday, 22 February 2010 9:00 AM

Uncertainty remains in the mortgage market for several reasons, with recovery set to be slow, according to one expert.

Timothy Lambert, head of consulting at property investment consultancy Ducalian, explained that mortgage lenders are obliged to provide more loans, but are being very careful.

"With a change of government likely within four months, lenders are also wary of fixed-rate mortgages as interest rates can only go one way and inflation is starting to rise fast," he continued.

Many people are also conscious of the possibility of a double-dip recession, Mr Lambert added, calling the mortgage market picture "artificial" because of these factors.

Mortgage lending will recover in time, but only when confidence returns to lenders, he concluded.

Figures from the Council of Mortgage Lenders show that gross lending fell to around £9.1 billion last month, a decline of nearly a third on December's level of £13.4 billion.

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