17-07-2007
Consumers should change spending patterns says CML
According to the Council of Mortgage Lenders (CML), British consumers will "struggle" to cope with higher repayments, as interest rate rises lead to a "crunch" in the property market in 2008, reports the Times.
"There will be some, particularly first-time buyers, who will need to change their spending patterns or social behaviour to be able to continue to afford mortgages," said Michael Coogan, director-general of the CML.
"I don't believe there will be a crash, but clearly a slowdown is more likely in an environment of higher interest rates," he added.
Indeed, according to the CML, house prices in the UK will grow at their lowest rate for 13 years next year.
The CML is a UK-based trade association.
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