As more consumers take advantage of mortgage advice, it is expected that the amount of mortgages in the UK are going to fall by around fifty percent. This is due in part to home owners taking mortgage advice as well as banks refusing to lend on home loans until the housing crisis ends. Since this may take two years at the least, experts are worried that the overall amount of mortgages will decline sharply.CML Chairman Steven Crawshaw said: “Potential borrowing still significantly exceeds the industry’s collective capacity to supply funds. It is a real possibility that net lending in 2008 could reach only half last year’s level unless additional funds become available.”CML Chief operating officer Graeme Yorston said: “In the mortgage market, supply is nowhere near what it was in previous years. The credit crunch has largely removed the ability of banks to borrow money from other institutions which has reduced the supply side quite significantly. Demand is then greater because supply is more limited and it is beginning to get tougher to get mortgages. Our view is potentially, without changes to what is going on at the moment, this is a 12 to 18 month issue. It is going to take the credit crunch to free up to lend more than we currently are.
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