Why are people making a mortgage fuss
Interest rates could increase or decrease, however by the end of 2008, the assetz group feel that the average house price will still grow, a member from the Assetz group explains in more detail.
It is expected for the average house price to climb at least 5% in 2008, this is simply because of immigration statistics growing and Government plans to build new homes.
Mr Law from assetz group commented: “Despite a recent slowing in the rate of house price growth across the market, the average figures reported by the major indices show that house prices have continued to grow at a healthy rate over the last two or three months. As a result of sustained low inflation and economic pressures, the Bank of England will have to keep interest rates at a neutral rate of around 5% in 2008.”
Sub-prime lending will also remain extremely difficult in the New Year because of poor credit mortgage applicants struggling to complete a mortgage deal.
Law also stated that he expects lending to pull through, as underwriters understand the quality of security, “significantly better than any other market sector”.
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