SALES NEWS: Interest rates on hold as mortgage lenders try to woo new clients
Most analysts believe the warning against interest rate rises given by the Bank of England means there will be another year – at least – of very low mortgage costs.
Bank governor Mark Carney has made it clear that world economic uncertainty has led to a delay in any increase. “Now is not yet the time to raise interest rates” says Carney.
The news has come just as new figures from the Council of Mortgage Lenders show an 18 per cent increase in mortgage lending in the year to December – a traditional sign that the housing market is in good shape.
CML figures also show property has become slightly more affordable, too. Today, first time buyers devote an average 18.3 per cent of their monthly household income to paying a mortgage. A year ago, it was 19.3 per cent.
Independent experts at websites like Moneyfacts and Moneysavingexpert suggest improved competition between mortgage lenders makes this a good time to buy a home or remortgage an existing property to secure a better long-term deal.