Market analysts Datamonitor have predicted that mortgage lending will decrease by 10% over the next three years. Research has found that the slowdown in the housing market would lead to a slow down in lending levels, although it is predicted that the non-conforming mortgage market is expected to outperform the mainstream market over the next four years.
Our view
This is a sensible suggestion given that people are nervous of interest rates, the housing market is slowing and people are thinking of managing down their debt.