Household Finance Review comment from LiveMore
Simon Webb, managing director of capital markets and finance at LiveMore, commented: “It was a good start to 2022 for mortgage lending but we have already seen from the Bank of England’s April data a downturn has started.
“The rise in the cost of living for essentials such as food, gas, electricity and petrol coupled with the the 1.25% rise in National Insurance will see many people struggling financially. UK Finance data suggests those with mortgages will have 3% less disposable income after paying for essentials.
“Add into this interest rates going up then it makes sense to take out a long-term fixed rate mortgage for both new home loans and remortgaging, which is fuelling much of the current lending. Long-term fixes will provide peace of mind that monthly repayments will never go up during the term of the mortgage.”
Published: 08 June 2022