Funding & Mortgage Famine

Happy New Year to all readers, lenders and borrowers

It appears our worst predictions are coming true, today the Bank of England said banks and building societies in the last quarter of 2007 lent far less than had been the case, not just to private homeowners in mortgages but far less to business also

Sorry but it is a sign of the times, times to come we think - certainly for most or all of 2008 with any respite not showing its face until early next year

Reductions of interest rates will happen, but certainly won't do much for the domestic mortgage market and the Average House Price Index is likely to fall by the 12% we predicted but please do not be surprised if values don't come back by 15% or even 18% off the January 1st 2008 AHP