Mortgage lending to homebuyers is predicted to fall by 23 per cent subsequent 12 months as the price of dwelling squeeze and rising rates of interest make property much less reasonably priced.
Figures from UK Finance, which represents banks and different monetary corporations, predict that loans for residence purchases will fall to £131billion from £171billion this 12 months.
It’s one other signal that the property market is slowing down – after knowledge confirmed home costs falling over three months.
Squeeze: Figures from UK Finance predict that loans for residence purchases will fall to £131billion from £171billion this 12 months
The figures come forward of an anticipated 0.5 per cent hike in rates of interest on Thursday, inflicting additional ache on debtors.
UK Finance expects property transactions to fall 21 per cent subsequent 12 months to 1m. Total mortgage lending is about to fall 15 per cent, taking into consideration the possible rise in these in search of to refinance fixed-term offers.
That quantity is predicted to hit 1.8m as offers taken through the stamp responsibility vacation come to an finish.
In the meantime, the variety of mortgages in arrears is predicted to climb to 98,500.
UK Finance researcher James Tatch stated: ‘The mortgage market is predicted to enter a interval of relative weak point from subsequent 12 months.’
