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27 Sept 07 - Investors Driving Mortgage
Market
The global credit crisis has not affected the availability of home loans, mortgage
lenders have said. But they are warning that recent turbulence
in the market, as well as changes in the cost and availability
of funds, indicates a drop in the credit supply.
The warning in a Bank of England credit conditions survey
increases expectations of a cut in interest rates before
the end of the year. The study, carried out between August
20 and September 13, found that buy-to-let investors have
driven a small but unexpected increase in demand for mortgages.
Lenders predict the rise will continue among people with
good credit records, but expect a fall in buy-to-let deals.
Howard Archer, chief UK and European economist at Global
Insight, said: "This is likely to increase expectations
that the Bank of England could trim its benchmark interest
rate before the end of the year."
Source: Bank
Of England
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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