Friday, 20 June 2008

Mortgage rates are rising

While the Bank of England cut base rates, mortgage lenders increased lending rates. The 95 percent LTV, two year fixed rate increased 124 basis points between January 2007 and April 2008.

Higher mortgage rates, lower house prices.


CWS said...

Can a FTB get a 95% LTV mortgage now?

Anonymous said...

Call me bitter, but this is music to my ears.

I wonder how London Estate Agent is gonna spin this graph.


electro-kevin said...

There is massive scope for contraction in housing demand.

Plenty of spare bedrooms and room for multi-generational occupancy ... just like the old days.

All that is needed is a change in personal expectations - which relegation out of the First World should bring.

People often conflate crowding with house demand and conclude that there will be ever rising property values.

Some of the most poverty stricken areas in the world are the most crowded. The value of a house is determined by the value of the country it's in.