The missing wholesale funding market
10/02/10 23:20 Filed in: Financing
A report
was produced by the Council of Mortgage Lenders. It
looks out over the next five year to spot some trends
that could have a major impact on house prices, home
finance availability secured by a mortgage and other
details.
The key message is the UK mortgage market is dependent on the return of the wholesale funding (Mortgage Backed Securities - MBS). If the MBS sector does not recover the retail deposit base held by UK banks will not be sufficient to fund the volume of mortgage secured lending. If the numbers stack up only 40% of the recent demand will be funded from retail deposits. A dramatic shortfall could result in either a shift aware from owner occupancy or a drop in house prices.
Council of Mortgage Lenders - The outlook for mortgage funding markets in the UK in 2010 - 2015
John Corey
The key message is the UK mortgage market is dependent on the return of the wholesale funding (Mortgage Backed Securities - MBS). If the MBS sector does not recover the retail deposit base held by UK banks will not be sufficient to fund the volume of mortgage secured lending. If the numbers stack up only 40% of the recent demand will be funded from retail deposits. A dramatic shortfall could result in either a shift aware from owner occupancy or a drop in house prices.
Council of Mortgage Lenders - The outlook for mortgage funding markets in the UK in 2010 - 2015
John Corey
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