Mortgage borrowers will be reassured by a new report from the International Monetary Fund (IMF) that backs the Bank of England’s decision to keep interest rates low, despite rising inflation. According to the IMF, UK inflation will remain above 4% for most of 2011 but return to around 2% towards the end of next year, [...]
interest rates
Mortgage rate threat recedes
Homeowners should benefit from another reprieve on interest rates this month, with the Governor of the Bank of England having warned that rate hikes would only worsen the “massive” economic challenges faced by highly indebted economies. Addressing the European Parliament’s Systemic Risk Board yesterday, Mr King said: “The economic consequences of high-level indebtedness now would [...]
Borrowers pay back more of their mortgages
Homeowners appear to be taking advantage of low interest rates after Bank of England figures showed borrowers paid a record £24 billion last year. According to the Bank, homeowners paid back more than £24 billion to lenders last year – the highest since records began in 1970. Meanwhile, £7 billion was paid back in the [...]
Mortgage borrowers unaware of low interest rates
One in four mortgage holders doesn’t realise that interest rates are at historic lows, research highlighted by Shelter suggests.
According to the homelessness charity, 25% of the 1,500 homeowners surveyed believe current rates are either higher than or the same as they have been in the past, or simply don’t know.
Of this group, 9% believe interest [...]
House prices up 0.8%
UK house prices rose by 0.8% in January, according to Halifax.
However, the lender reports a quarterly fall of 0.7%, to £163,173, with the annual rate of change currently at minus 2.4%.
Looking ahead, Halifax housing economist, Martin Ellis, expects limited movement in house prices overall in 2011, although there are likely to be some monthly fluctuations, [...]
Nationwide: January house prices down 0.1%
UK house prices fell by 0.1% in January, according to Nationwide, taking the annual rate of change to minus 1.1%.
The monthly decline follows a gain of 0.4% in December (when annual house price inflation also stood at 0.4%) and takes the value of the typical home down to £161,602.
The three-month-on-three-month measure, which is a better [...]
BoE governor committed to low interest rates
As homeowners on lenders’ standard variable rates increasingly seek out fixed-rate deals to offset the threat of a rise in the base rate, the Governor of the Bank of England has reaffirmed his commitment to keeping interest rates low.
Speaking in Newcastle last night, Mervyn King admitted that inflation could rise to 5% during 2011 (currently [...]
Nationwide: “anything is possible” as house prices gain 0.4%
UK house prices rose by 0.4% in December, having recorded declines in the previous two months, according to Nationwide’s latest house price index.
This month’s modest rise means that the value of the typical home ends 2010 with an “unremarkable” gain of 0.4%, as most price increases from the first half of the year were reversed [...]
Housing and mortgage markets to remain broadly flat in 2011
In its forecast for 2011, the Council of Mortgage Lenders (CML) says it expects low interest rates to underpin “significantly” current house prices, despite low levels of property sales.
The lenders’ body is even suggesting that the base rate could remain at its current level of 0.5% for the whole of next year.
Low interest rates should [...]
