The Bank of England (BoE) has recently released its inflation report, and with current growth recorded at 1% each month, the study indicates that this will slow to 0.5% by Spring 2015.
The report compares property market findings that analyse trends for house prices, enabling the BoE to predict the impact it feels the data will have on the UK’s house price growth.
However, adding a note of caution to the predications, the BoE commented:
“There is more uncertainty about the path for the housing market in the near term than three months ago.”
New lending rules enforced by the Financial Conduct Authority – following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review conducted in April 2014 – mean lenders have to assess borrowers’ ability to repay in more detail, ensuring they can manage their mortgage payments in the event of rates rising. Increased speculation into the stability of rates will no doubt affect the behaviour of borrowers.
As the economy and mortgage environment evolves and changes, an increasing number of borrowers are seeking the advice of professionals who have undertaken the relevant CeMAP training, to ensure they receive the best and most suitable advice and find the most competitive mortgage deal.
The Bank of England has also reported that as the growth in house prices slows, approvals for new purchases should continue to increase to around 75,000 per month as 2014 draws to a close. The increasing strength in the economy was also confirmed with revised predications from the Council of Mortgage Lenders, which has said that 2014 will see more than £200 billion in mortgage completing, which is the first time this level has been reached since 2008.