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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 5 October 2011

UK Interest Rate: 0.5%

UK Interest Rates Forecast: Upside risk in longer term; little change in short term

Mortgage Approvals Up 6.2% in August to 20-Month High

Mortgage approvals rose by 6.2% in August to their highest levels in 20 months, according to new figures from the Bank of England. The biggest rise was in remortgaging deals, which rose by 9.5% from 31,652 to 34,668.

Mortgage approvals for house purchases rose from 49,644 to 52,410, an increase of 5.6%.

Competition Up Amongst Mortgage Lenders

Competition appears to be increasing between mortgage lenders. Those questioned for the latest Bank of England Credit Conditions Survey said that spreads – effectively the lenders' profit margins on mortgages – have fallen over the last quarter and are expected to fall further in the final quarter of 2011.

The survey also found that availability of mortgage lending to borrowers with high loan to value (LTV) ratios is improving – meaning a better choice of mortgages for borrowers with a deposit of 25% or less.

The survey found that overall availability of credit to households was expected to "increase slightly" in the final quarter of 2011. However, mortgage lenders indicated that tighter wholesale funding conditions might reduce availability of mortgage funding to homeowners.

Average Mortgage Rate 3.55% on New Deals

The average interest rate on new mortgage deals fell by 0.13% to 3.55% in August, according to the latest figures from the Bank of England.

The average interest rate on existing mortgage deals rose by 0.01% to 3.41%.


 

 

 

 



 

 

 





 

 


 



 


 


 





 


 



 



 

Completing Your Property Deal

Valuations and Surveys


Please note, this information is NOT necessarily RELEVANT in Scotland


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