Buyers ‘face increased affordability woes’
First-time buyers could be set to struggle even further in a bid to get on to the property market, it has been suggested.
According to David Stubbs, senior economist for the Royal Institution of Chartered Surveyors, borrowers are beginning to feel the impact of the four interest rate rises that have taken place since August 2006, which consequently have resulted in an increase of home and secured loan repayments.
He said: "Mortgage lending is slowing as rising house prices and interest rates continue to worsen buyer affordability."
Mr Stubbs added that as another interest rate rise is predicted to take place over the course of this summer then uptake of secured and Home Loans could decrease even further.
However, Property Secrets chief analyst Simon Tweddle claimed that although rising inflation and property prices will increase borrowers’ secured loan repayment costs, the housing market is not set for a crash.
Interfinancial providing you with breaking secured loan news.
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