Although there are high hopes that low rate mortgages will soon return to the UK, many are waiting cautiously to see what happens in the US markets, as well as what banks are doing. Low rate mortgages are always popular and even though some lenders have dropped rates, many feel that it is way too early to start celebrating any large scale drops or a general return to low rate mortgages. The UK housing and property market remains unstable and the actions of a few lenders must be weighed against the actions of many according to these experts.
“We think that in most respects the UK is undergoing a U.S.-style housing correction,” said David Page, economist at Investec, who expects house prices will continue falling until the end of next year before finding a bottom. We think that this is likely to be followed up by years of much flatter growth than we have seen for the bulk of the preceding decade.”
“The lack of mortgage funding increases the danger of an over-correction in prices beyond what is required to bring buyer affordability in line,” said Miles Shipside at Rightmove.
Related reading: Low Rate Mortgages
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