Mark Carney said that Threadneedle Street's decision to rein in mortgage lending was designed to head off a boom-bust in the property market at an early stage and avoid drastic policy action in the event of a bubble. "Think about the mortgage you are taking on, the debts you are taking on," Carney said when asked what his message was to those aspiring to get on the housing ladder. "You are taking at least a 25-year mortgage, maybe a 30-year mortgage." Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher? Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"
Carney was speaking as the latest data from Nationwide building society showed annual house price inflation at 6.5% – its highest since July 2010. The governor expressed concern about the lack of new homes being built as the Bank's own figures demonstrated that demand for property was strong. Mortgage approvals are running at levels not seen since Northern Rock was nationalised in February 2008. If you want to know how you might mangage to take on a mortgage Enable’s experience IFA’s in Bishop's Stortford can talk you through your options.
Remember - Your home may be repossessed if you do not keep up repayments on your mortgage.
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It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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