CML sees positives in 2008

The Council of Mortgage Lenders (CML) does not share the gloomy outlook for the mortgage market that some analysts do.

In a commentary on the market, the organisation said that last year had seen a record level of gross mortgage lending and had largely been successful.

That was until things turned sour in the final few months but the CML does not believe that things will necessarily carry on in this way throughout the whole of 2008.

"First-time buyers are accounting for a larger share of recent enquiries. Stable to slightly softer prices, and improved prospects of finding a bargain, might help to put a floor under the interest of those looking to enter the market, particularly as supply remains tight in many areas," read a statement from the CML.

"Another reason not to overdo the pessimism is that interest rates are falling… policy remains restrictive, and has been made more so by the tightening in credit conditions. The wider risks to the economy mean that the trend in rates will almost certainly be down this year, and this is priced into market rates," it continued.

The organisation said that people should not "assume without question that recent trends will continue".

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