![]() ![]() ![]() It said the effective interest rate – the rate paid by consumers – on newly drawn mortgages rose by 5 basis points to 4.46%.īorrowing costs have risen dramatically in recent months after 12 straight interest rate increases from the central bank, taking its key base rate from 0.1% in December 2021 to the current level of 4.5%. The Bank said net mortgage approvals for house purchases fell from 51,500 in March to 48,700 in April, while remortgaging approvals increased slightly from 32,200 to 32,500. And rates could head up further, putting more pressure on housing market activity.” ![]() ![]() Martin Beck, chief economic adviser to the EY Item Club, said: “The numbers point to a housing market struggling in the face of pressure on household finances and higher mortgage rates. The figures reflect the central bank’s most aggressive round of interest rate increases in decades feeding through to the property market, as Threadneedle Street ramps up borrowing costs in response to stubbornly high inflation. Separate figures from the Nationwide building society showed that house prices fell in May at an annual rate of 3.4%, representing the sharpest fall since July 2009, when the British economy was grappling with the fallout from the 2008 financial crisis. ![]()
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