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CML’s Gross Mortgage Forecast for 2012

CML’s Gross Mortgage Forecast for 2012
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It has been predicted by the forecast of CML that the end calculation of outstanding balance will stay consistent at 180, 0000 which will account for 1.58% of all mortgages. The forecast is showing a hesitant economic growth at the end of 2011 because of the ongoing contraction in real income is continuously intensifying the households. However a more positive backdrop will be observed in the next few years.

The remortgaging activity as noticed by CML suggests that the prospects of interest rates will become lower in the coming years. The financial position of many households will be undermined by the fiscal cuts and subdued earnings growth which is the result of the combination of strong consumer price inflation. Moreover, the recent figures in employment are much better as stated by CML.  Therefore, CML does not want to alter its forecast for the year of 2011 which was made for 40, 000 repossessions and 180, 000 arrears of more than 2.5% of the mortgage balance.

It has been stated by CML that the rebalancing condition of UK economy effects the households transitions and leave a difficult situation for them to handle. Moreover, the addition of inflationary pressure to the financial pressure is in further creating many problems in the growth of the economy and reinforcing it in the short-term. The situation is however can be controlled by the Bank of England and it should be able to maintain lower interest rates and must provide material help to those who are facing problems in service debts

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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