The Council of Mortgage Lenders (CML) has hinted at an uncertain immediate future for the mortgage industry, following the release of its market forecast.
The forecast indicated that consumers could be looking to rebuild their savings in the short-term, rather than jumping in with new mortgages.
The CML did state however that with lower interest rates likely this month, the long-term future for the housing market is "favourable". Lower interest rates should ultimately reduce the number of people saving and make mortgages more affordable.
However, among the report's findings was the statement that "affordability problems will only ease slowly", meaning that housing demand is unlikely to recover quickly.
Further tax increases are also expected by the Council, with knock-on effect on household spending likely, which would impact on consumer confidence.To read more about mortgages, click here.
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