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Mortgage market may improve, lender says

Wed, 30 Jul 2008

According to experts at mortgage lender Lloyds TSB, the mortgage market may improve during the back half of 2008. The news, a rare silver lining against the seemingly never-ending cloud of bad news this year, could be due to more mortgage lenders coming back into the market .

Lloyds are forecasting an increase in the number of mortgage loans approved over the next few months. Lloyds are another lender, like Abbey, that has focused on improving market share even as other lenders baulk.

The chief executive of Lloyds TSB, Eric Daniels, reportedly commented: "The mortgage market is reaching a new equilibrium. We expect lenders in the second half will take a slightly more aggressive stance and put more mortgages out there. So I don't think we will continue with as much as 24pc of net new lending ."
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