A rise in interest rates could ultimately be a good thing for the housing market, says Jonathan Cornell, technical director at Hamptons Mortgages.The Bank of England indicated in its inflation report last week that there is a 50% chance of inflation rising above 3% within the next six months, which means a further rise in interest rates could be on the cards. Mervyn King, governor of the BoE, admits inflation is likely to be volatile over the coming months but says it has not made a decision yet to raise interest rates again. King also says high house prices rather than repayment costs are the biggest obstacle to home ownership. Cornell says: “People may choose not to buy a bigger house, or first-time buyers may wait to get onto the property ladder. But a decrease in demand for property means a decrease in house prices. This is a good thing as we all want stability in the market and not a boom and bust situation.” He adds: “Further interest rate hikes won’t push millions into arrears – it’s those living close to the line already that are most at risk.”
West Brom for Intermediaries is providing brokers with access to decisions in principle via Trigold’s E-Trading Centre.
edeus says the absence of the Regulatory Association of Mortgage Packagers from its panel is not a sign of bad feeling between the two. Michael Bolton and Alan Cleary’s new lender revealed the names of the first 15 firms and associations to join its so-called circle of trust last week. This included the Association of […]
Chris Bevan has joined Cobalt Capital as group business development manager, heading up the companies business development unit.Bevan previously worked at John Charcol for over seven years and was instrumental in setting up its Canary Wharf office five years ago, as well as helping to build relationships with several key corporate introducers. Most recently, Bevan […]
From K Furlong I have provided financial advice to a client for many years. Recently, she converted a four-storey traditional building into four one-bed flats, observing all the regulations regarding noise and fire at great expense. The tradespeople employed, from architect to builders, roofers, plumbers and painters, did their jobs well – until we got […]
This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]
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