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UK Interest Rates Forecasts and Predictions for Home and Property in the UK

Checkout this weeks latest interest rate forecast here

 

Interest Rate Update 21 December 2011

UK Interest Rate: 0.5%

UK Interest Rates Forecast: Low rates likely but there is some risk of rises

Low Mortgage Rates Are Supporting Market

One of the reasons house prices have not crashed outright is that mortgage rates have remained extremely low throughout the financial crisis, making mortgage payments more affordable than ever for most homeowners and reducing the number of repossessions that would otherwise have taken place.

New figures from the Council of Mortgage Lenders (CML) for October show that first-time buyers are enjoying lower payments, as a proportion of income, than at any time in nearly eight years.

First-time buyers' monthly interest payments have now fallen down to an average of just 12.3% of income, the lowest level since January 2004. Home movers are also benefiting, with their interest payments accounting for just 9.2% of their income - the lowest level since monthly records began in 2002.

These figures suggest that the biggest hurdles for first-time buyers are the moment are employment security and saving a large enough deposit – the CML figures show that the average first-time buyer deposit in October remained unchanged at 20%.

Lending Down In October

Mortgage lending for house purchase in October fell by 8% in both volume and value from September. Remortgaging approvals fell further, dropping by 15% in number and 16% in value.

The number of first-time buyer mortgage approvals in October fell by 10% from September, but the average first-time buyer loan-to-value ratio (LTV) remained unchanged, at 80%. The average home mover LTV also remained unchanged at 69%, just 1% higher than in October 2010, when it was 68%.

 

 

 


 

 

 

 



 

 

 





 

 


 



 


 


 





 


 



 



 

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Please note, this information is NOT necessarily RELEVANT in Scotland


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