All borrowers 'will be affected by the credit crunch'

Everyone who is currently borrowing a mortgage in the UK will be affected by the credit crunch, according to the Council of Mortgage Lenders (CML).

The body''s director general Michael Coogan made the comment while speaking at a Debt and Personal Finance All Party Parliamentary Group meeting.

However, he added that in the short term, people who are coming off fixed rate mortgages appear to be coping with the "adjustment" well.

Mr Coogan said: "For some borrowers coming off fixed rates, higher payments will be affordable because their salaries have continued to go up."

"For others, the option of extending their mortgage term, switching from a repayment to an interest-only loan, or a short-term payment holiday may be an option if they have good payment histories."

The CML recently urged the European Commission to shelve proposals featured in its White Paper about the integration of the continent''s mortgage markets.

According to the organisation, conditions in the sector have changed since the document was prepared, meaning it would "make no sense" to proceed with the amendments.

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