Wednesday, April 4, 2007
Lendors say the US issues will not spread here but withour giving any solid reasons
LONDON (Reuters) - The crisis affecting the U.S. mortgage market has been a wake-up call for Britain's mortgage lenders but most are confident a similar storm will not occur this side of the Atlantic Not everyone is so sanguine. Capital Economics' Stansfield reckons that simply because the fault lines in Britain's mortgage market are different from those that triggered the U.S. crisis does not mean Britain is immune from further problems. While loan-to-value ratios are generally lower in Britain, he points out that lending as a proportion of income is actually higher.