Rates attached to such as tracker mortgages appear set to remain subdued for some considerable time, an expert in the field believes.According to Ben Wilkie, editor at What Mortgage, banks and buildi…
Rates attached to such as tracker mortgages appear set to remain subdued for some considerable time, an expert in the field believes.
According to Ben Wilkie, editor at What Mortgage, banks and building societies will probably not boost the figures attached to their mortgages in the near future as they continue to recover in the wake of the global economic downturn.
A study released last week (August 16th) by the Chartered Institute for Securities & Investment showed that 51 per cent of financial services practitioners expect the Bank of England to keep interest rates at 0.5 per cent for at least the next year.
The figure has been at this historically low level for 29 months in succession and Mr Wilkie indicated it appears “increasingly likely” rates will stay “very low for a long time”.
He went on to say there is “no reason” to think the UK will take a different stance to interest to the US, which announced recently their figure will remain around zero for the foreseeable future.
Meanwhile, research has shown that in the UK are getting older.
The average prospective homeowner in the UK is 35-years-old before they can afford to take out their first mortgage, new research has revealed.
In news that may be of particular note to those with Post Office savings, a study published by the financier over the weekend (August 20th) showed that the average age of a first-time buyer in Britain has gone up by eight years since the 1960s.
Meanwhile, the survey also discovered that more than half – 53 per cent – of potential purchasers between the ages of 25 and 34 believe they will never be able to afford a home loan in the aftermath of the global economic downturn.
Mike Cook, head of mortgages at the Post Office, commented: “Many would-be first time buyers may have been put off trying to get onto the housing ladder by the size of deposits now needed.”
This comes after Matt Griffith of PricedOut noted that financiers will continue offering their best home loans to customers with high amounts of available equity.
In related news, Prospective first-time buyers who believe credit card issues are having an adverse effect on their chances of obtaining a mortgage are to be offered assistance by two financiers.
It was announced last Friday (August 19th) that Halifax and Experian’s CreditExpert arm are to join forces in order to assist such consumers in their attempts to secure a home loan in the present economic climate.
For instance, anyone who gets rejected after applying for a mortgage with Halifax on the grounds of their weak credit rating will be given unlimited access to Experian’s team of experts so they can find out ways in which to improve this score.
Stephen Noakes, commercial director at Halifax, commented: “Although eight out of ten borrowers are successful in getting a mortgage, we don’t want the unsuccessful few to feel like they’ve hit a brick wall if they’re turned down.”
This comes after the Council of Mortgage Lenders revealed that gross mortgages lending in the UK last month slipped one per cent to £12.6 billion.