The survey showed that UK lenders have been worried about wholesale lending for six months and expect problems to continue in Q1.
In the latest Mortgage Solutions poll, 42% of brokers said they expect the market to get worse this year, while 32% disagree. An additional 26% of brokers said it was still too early to call.
Martin Wade, director of Your Mortgage Decisions said the he doesn’t expect 2012 to be any stronger than 2011.
“The volatility surrounding the eurozone and the support needed is enormous and that’s far from a done deal. Any further bad news from there is going to cause pressure on wholesale lending.
“It isn’t entirely bad though because lenders are pushing for product innovation and we’re likely to see competition from new lenders which will help push the market forward.”
Wade added that the biggest issue in the market remains consumer confidence.
He said: “Many consumers believe it is impossible to get a mortgage and that rates and costs are too high. It is people’s perception that rates are high and their lack of confidence that is stopping them from taking out a loan. That has a bigger impact on the recovery of lending levels than any of the other things at the moment.
“What the government, lenders and brokers need to be doing is getting the positive message out there which is that the banks are open for business, mortgages are available and funding is there.”
