All Press Releases for August 27, 2007

UK Mortgage Market Reacts To Us Crash

    /24-7PressRelease/ - BOURNEMOUTH, UK, August 27, 2007 - UK mortgage lenders withdraw lending from sub-prime market without notice as a direct consequence of the US sub prime market crash.

The Council of Mortgage Lenders stated earlier this month that because of the "structural differences" between US lending and UK regulated lending the UK mortgage market would not be affected. However it has just been revealed that three UK lenders have simply pulled out of the sub-prime market without notice and this is giving rise to concerns that they may shortly be followed by main high street lenders.

First to go was DB Mortgages who have recently been followed by Unity Homeloans and Infinity Mortgages. All three lenders who play a large role in the sub-prime UK mortgage market have stated that their withdrawal is simply about "re-pricing" and that they intend to return to the market.

"I think the initial statements sent out by UK lenders council was slightly naïve as a lot of the main US lenders have stakes in the UK market which means there will definitely be a knock-on effect. Hopefully the market won't go into panic about the recent withdrawals and cause a domino effect." company director Paul Giles has seen an increase is user applications for a sub-prime mortgage quote since the US market crash which possibly means that users might be trying to 'get in quick' out of fear of a sub-prime market lending decline.
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