Market conditions have “deteriorated sharply”

The Council of Mortgage Lenders (CML) has announced that it considers conditions in the financial sector to have “deteriorated sharply” over the past fortnight.

It has called on the Bank of England to act on the country’s debt worries and acknowledge that concerns about economic downturn now outweigh that of inflation.

Restricted funding continues to affect the number of mortgages available, it added.

However, it has reiterated its statement that reports of the “death” of the buy-to-let mortgages sector have been exaggerated and that the industry is still coping after the near bankruptcy and subsequent bailout of Bradford & Bingley.

It comes as the CML released the latest issue of its News & Views publication, dealing with the recent happenings within the “fast-moving and febrile environment”.

Action must be taken to improve confidence in the mortgage funding market, it urged.

A lack of finance may make it increasingly difficult for ‘funts’ – people that are financially untouchable – to gain credit.

By Jamie Price