Home Buyers In UK Won’t See Increase In Mortgage Rates Soon

People who are looking to buy homes in the UK to see the mortgage rates remain in their low levels for some time despite the forecast that they may rise at the end of this year. The Bank of England though has indicated that the current base rate which is .5 percent is likely to remain for some time. The rise is expected to happen late into 2016 or 2017. The rate in the country has already been this low for about 80 months now. However, there are concerns that most home buyers will eventually get used to the low interest rates and this will backfire sometime in the future when the interest rate will increase. According to the head of Consumer Affairs at Experian, James Jones, home buyers need to work out on what they can currently afford to buy as well as plan ahead of time any unforeseen costs that may make while repaying back their debts and which could potentially be much difficult in the years ahead.

A survey of those who had failed to get a mortgage last year suggests that a lot failed to do the basic research that they need in order to get the proper control of their corresponding finances. There were about 14 percent of the respondents that did not know the amount of money that they have left at the end of the month while 18 percent did not know what their monthly repayments were and whether or not they could afford these. The research also revealed that 14 percent did not have enough deposit for the houses that they wanted and that about 12 percent were not able to secure the size of mortgage which they actually needed.

Another research material said that almost three quarters of owners of home are worried that they cannot repay their mortgage. There were about 16 percent that planned to repay their mortgage before their current loan ends.

With the increase of buyers in the property sector, companies that are selling vanity units for small bathrooms or other household furnishings are also doing well.


View all posts by