Building societies defend higher multiples

Building societies defend higher multiples

Britain’s building societies have defended their decision to offer mortgages with higher income multiples, despite criticism by the Bank Of England. Sam Woods, chief executive of the Prudential Regulation Authority (PRA) had warned that heightened competition pressures in the current mortgage war has led to lenders making ‘a material move up the risk curve’ by …

Mortgages most affordable in a decade

Mortgages most affordable in a decade

Mortgages are now at their most affordable in a decade according to the Halifax House Price Index, but it’s not all good news Typical mortgage payments now account for just 29% of homeowners’ disposable income compared to 48% in 2007. Annual house price growth is at 2.7% with a 1.5% increase in March.

Mortgages on the rise

Fixed rate mortgages are on the rise, even though the Bank Of England hasn’t raised base rate yet. Lenders appear to be interpreting recent hints by Bank officials, including governor Mark Carney, that base rate will start to rise sooner rather than later – possibly as soon as November.

Are cheap mortgages about to dry up?

Mortgage rates have never been lower, but is that all about to end? Bank Of England governor Mark Carney has just given his strongest hint ever that interest rates, which have been at a record low since the financial crisis, are about to start rising again.