The second half of 2007 was particularly tough for mortgage lenders and the property market in general as the US sub-prime crisis hit credit markets around the world.
However, many players in the market are still optimistic about 2008, despite claims that the UK housing market could suffer a severe blow from the credit crunch. After several years of rapidly growing mortgage markets, particularly in the specialist and sub-prime sectors, 2007 got off to a good start, with property prices rising at record rates and mortgage lending reached new highs. The year also began with numerous warnings about the possibility of a housing market crash in the US, which, coupled with central bank fears over rising inflation, created a difficult market for borrowers and...
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