Mortgage rate predictions for 2012
The Halifax's latest mortgage rate predictions for 2012, are that house prices are likely to remain unchanged. The bank says the low Bank of England base rate and favourable affordability conditions will support the housing market.
The bank suggests that market conditions, which have seen house prices and house sales stabilise during 2011, are likely to continue into 2012. However, this very much depends on the economy's performance over the next 12 months, which in turn depends on the Eurozone.
Halifax's housing economist, Martin Ellis has released his mortgage rate predictions for 2012. He predicts that as long as rates stay low, the market will be favourable for those who already have a mortgage and those who are able to raise the required deposit. He also is predicting that the favourable affordability position will help to keep down the numbers of homeowners forced to sell their properties because they cannot keep up with their mortgage payments.
According to the Council of Mortgage Lenders, gross mortgage lending in November totalled an estimated £13.0 billion, with the monthly figure showing its fourth consecutive year-on-year rise.
This is 5 per cent higher than in October, and 13 per cent higher than in November 2010. CML's mortgage rate predictions for 2012 are for £133 billion of gross lending and £5 billion of net lending. However, with so much economic uncertainty at present, this is subject to considerable variation in either direction.
