Categorized | International

Mortgage Lending Increases in UK for Fourth Straight Month

Please Share!

Despite fears of a looming European debt crisis, mortgage lending in the United Kingdom has increased yet again for the fourth straight month. Mortgage lending increased by roughly five percent over last month’s figure, and was actually more than thirteen percent higher than it was a year earlier.

While lending has increased at a rate that has far exceeded expectations, many analysts do not believe that such a performance will continue in the coming year. In fact, the general consensus among analysts is that lending will actually drop in 2012.

With the overall economy in the UK expected to weaken, more and more households will likely struggle with mortgage payments. The greatest struggles are expected to hit the non-prime real estate markets in the region. As such, many expect fewer real estate transactions to take place, and lending overall to fall. The credit market may also tighten, which will lead to a decline in lending as well.

Declining consumer confidence is expected to be a major factor in the overall lending and sales performance in the next year. While some lenders are expecting the market to fall into a decline, others believe it will simply flatten and show neither an increase nor a decrease for the year.

Although many are predicting a decrease in the overall lending volume, many mortgage loan analysts have also made it clear that the predicted performance could go either way. Depending on the status of the European market as a whole, the numbers next year could exceed expectations, or end up far worse than anticipated.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat