Northern Rock has announced that UK economic growth is to remain 'robust at about 2 per cent. With unemployment the key to home loan defaults, this should mean continued strong credit performance for tradtional and lifetsyle mortgages.
The housing market will continue to be underpinned by low debt servicing costs, limited alternative forms of tenure and a shortage of addtions to the housing stock. Thjer are however, early signs of first-time buyers starting to return to the market.
SUMMARY
- total net lending for 1st 9 months of they year 17 per cent higher than the same period in 2004.
- Total pipeline of agreed business of £6.3 billion, 23 per cent higher than the start of 2005.
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