The Council of Mortgage Lenders (CML) has announced its predictions for the 2008 housing market.

Specific forecasts from the industry body include an anticipated 0.75 per cent reduction in interest rates.

More than a million property sales are expected to take place over the year.

And slightly less precise predictions include positive house price inflation and total lending to remain above 2005 levels.

The popularity of homeowner loans - which are secured against property - could help to maintain this statistic.

CML director general Michael Coogan comments: "Most borrowers will cope, but not everyone will escape unharmed from the effects of a slower market."

As homeowner loans may be taken out against a property which is already mortgaged - called a second charge - some households could turn to them as a short-term means of meeting financial constraints.

Figures from Credit Action show that the total amount of loans secured against property rose by 10.8 per cent in the year to the end of August 2007.ADNFCR-1287-ID-18336334-ADNFCR

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