So what are the possible routes to cooling down raging house prices? It could be argued that making it harder for homebuyers to borrow money is already happening with MMR. But some lenders still offer loans that are more than five times a borrower's income. The Financial Policy Committee (FPC) could act to limit such borrowing as soon as next month, they could also make it more difficult to lend so banks and building societies would be forced to raise more capital. Of course interest rate rises loom but Mr Carney has promised not to use base rates as a means to cool the market. Many say the government's Help to Buy scheme - which allows buyers to find a deposit of just 5% -is helping to inflate house prices so the BofE could advise that the scheme is scaled back. The Business Secretary, Vince Cable, has already said it should only apply to properties up to a maximum value of £350,000, rather than the current £600,000.
But if Help to Buy has helped to put up house prices, remember it has also helped to increase the supply of housing. Private house building has increased by 34% in the year since the scheme started. Without it, the shortage of houses might have been worse, so prices might have been even higher. If you are looking to buy a home of your own Enable’s IFA’s in Bishops Stortford are happy to talk you through your options.
Your home is at risk if you do not keep up your mortgage repayments.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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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