MBE 2011: Gross mortgage lending to be flat next year
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The gross mortgage lending market will be flat next year, according to Nigel Stockton, financial services director at Countrywide.
Speaking at the Mortgage Business Expo in London today, Stockton says gross mortgage lending will stay at £140bn in 2012, unless the Euro crisis deepens.
Six lenders - HSBC, Nationwide, Lloyds Banking Group, Santander, Barclays and Royal Bank of Scotland, currently make up 80% of the UK’s mortgage lending.
Stockton predicts that these lenders will not increase their lending next year and two out of the six lenders have exposure to Europe and could therefore decrease their lending if things get worse in the euro zone.
He warned brokers that they should recession proof by preparing for a 30% drop in business if the euro zone goes crazy.
He told delegates: “I don’t expect this to happen, but you should ask yourself what would happen to your business if your revenue was to be cut by a third.”
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