Mortgage market 'needs confidence boost'

17 October 2007
The mortgage market is in need of a confidence boost following recent reports and developments, according to an industry body.

Despite gloomy news in the past few months, the market is in robust shape, according to the Intermediary Mortgage Lenders Alliance (IMLA).

Spokesman Peter Williams believes that the fundamentals of the market are sound and expects things to return to normal soon.

He dismissed UK credit market fears as largely jumping at shadows, saying that the recent turmoil "was attributable not to an actual problem with the credit quality of UK mortgage books, but concerns among investors that UK lenders could encounter the same problems as have occurred in the US".

He says that these fears were unfounded, as they did not take account of the good quality of most mortgage credit in Britain.

According to the latest report from Rightmove, last month's dip in house prices was a temporary blip that has been reversed in October.

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