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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 9 January 2012

UK Interest Rate: 0.5%

UK Interest Rates Forecast: Low rates likely to continue

Average New Mortgage Rate Now 3.39%

The average interest rate on a new mortgage deal was 3.39% at the end of November 2011, according to the latest figures from the Bank of England. The average mortgage rate on existing deals is a little lower, at 3.36%.

Average mortgage rates on new deals fell steadily during the second half of 2011, from a 2011 peak of 3.86% in June.

Mortgage lending rose by £1bn in November, indicative of the fact that the number of house sales recorded in November 2011 was the highest since December 2009.

Mortgage lenders say that they expect availability of new mortgage lending to "increase a little" in the next three months, according to the Bank of England.

However, they reported an overall fall in demand for mortgage lending in the final quarter of 2011 and said that they expect this trend to continue in the first quarter of 2011. Lenders forecast that 'spreads' – effectively the profit margin on mortgages – will fall slightly in the first quarter of 2011. Translated, this means that further cuts to mortgage rates are likely, as lenders compete for scarce customers.

Mortgages In 2011: Most Affordable For A Decade

Mortgage payments fell to an average of just 15.4% of take-home pay in 2011, according to a new report from Barclays, which analysed more than one million of its customers' accounts to compile the figures.

This compares with an average of 20.8% in 2008, shortly after house prices peaked. A Barclays poll of homeowners found that 64% now find their mortgage affordable, compared with 52% this time last year.

 

 

 


 

 

 

 



 

 

 





 

 


 



 


 


 





 


 



 



 

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Please note, this information is NOT necessarily RELEVANT in Scotland


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