experts predicted it, homeowners feared it, it’s finally starting to happen:
Abbey has become the first UK bank to increase mortgage prices according to the BBC, they blame the increase on the subprime market troubles.
Personally, i don’t see why this should be the homeowner’s problem. its not them that’ve caused the turmoil, the base interest rate hasn’t gone up either.
In the housing industry there’s hardly ever any good news. a house that cost £80,000 in 1999 now costs £200,000 a 150% increase in such a short period.
what’s more: Figures from the Council of Mortgage Lenders (CML) show that first timers are now borrowing an average of 3.33 times their incomes to buy a home.
With interest rates having risen four times in the past year, interest payments now take up 18.7% of the average first-time buyer’s income.
Who will realistically afford a mortgage in the future? unless people’s salaries can find a way to rapidly increase, its doom for those of us who don’t already have a mortgage.
on the flipside, the bad credit mortgages industry is booming with many mainstream lenders branching out and taking advantage of the ever increasing number of people with bad credit.
I hope there will be a downturn, otherwise some of us will stay home with parents for a very long time!!
