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US Mortgage Problems Will 'Only Indirectly Affect' UK Mortgage Market
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The problems encountered by American mortgage companies Freddie Mac and Fannie Mae will only have an "indirect effect" on the UK mortgage market, a financial advice site has revealed.
Although western economies are facing a recession, Your Mortgage believes that the British housing economy will not be hit as a result of the delicate situation in the American mortgage sector.
Editor of the website Pauline McCallion said: "The central banks in the UK, America and Europe all operate different policies when they deal with different issues.
"The mortgage markets are so interconnected at the moment so it probably will have an effect indirectly."
Shares in the US mortgage firms dropped by as much as 50 per cent in what BBC called "rollercoaster trading" on Friday after investor concerns led to the US Treasury announcing it will provide financial support to help shares recover.
The companies represent half of all American mortgages.
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