First-timer buyers set to benefit from affordable rates
5th Jul 2012
People planning on buying a house for the first time in 2012 should be able to benefit from affordable rates as far as their mortgage is concerned, one expert has predicted.
Bernard Clarke, communications manager at the Council of Mortgage Lenders, acknowledged that mortgage rates have risen in response to higher funding costs faced by lenders.
However, he noted: "The outlook for the moment is that the base rate will remain at the current low levels, but this does not necessarily determine the rates that lenders charge to borrowers - that is a function of how easy, difficult or expensive it is to raise funding."
Clearly there are upward pressures at the moment, but unless there is a very large degree of disruption - perhaps as a result of developments in Europe - rates should remain affordable by historical standards.
His comments came after the Bank of England revealed that the number of loan approvals for house purchases (51,098) fell slightly in May, and was slightly lower than the previous six-month average (52,812).
The number of approvals for remortgaging (29,244) also decreased in May and was lower than the previous six-month average (30,445).
Despite this, Mr Clarke said he expects rates to remain affordable for first-time buyers in the foreseeable future and for the number of approvals to gradually increase.
Posted by Staff Writer: Frances McDonald
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