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Propertymark asks lenders to bring in affordable mortgage rates

  • 28/02/2024
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Propertymark asks lenders to bring in affordable mortgage rates
Propertymark has called on lenders to develop affordable mortgage products to boost consumer confidence and help with the cost of borrowing.

Propertymark said that, with inflation steadying and expectations for base rate cuts, it was “keen” to see lenders take this action. 

It pointed to Halifax, which announced rate reductions last week, amid a trend of other lenders increasing their mortgage pricing. 

Halifax made reductions of up to 0.34 per cent to its range, with the headline cut applied to a three-year fixed remortgage at 90 per cent loan to value (LTV), putting the rate at 5.55 per cent. 

Across its purchase products, a two-year fix at 90-95 per cent LTV went down by 0.3 per cent to 5.15 per cent, while the five-year fixed equivalent was reduced by 0.28 per cent to 4.92 per cent. 

Propertymark also mentioned the introduction of the 99 per cent mortgages, which has been rumoured as an incoming government policy, set to be announced at next week’s Spring Budget. 

The association said that, if the scheme was approved, it would help some people get onto the property ladder, but could risk “artificially” inflating house prices due to higher demand.

Nathan Emerson, CEO at Propertymark, said: “Propertymark are keen to see first-time buyers assisted with their property-buying journey, and lower-rate mortgage products are always an encouraging first step to boost affordability for many.

“It’s important any additional incentive schemes are well-thought-out and structured in a way that supports the wider housing market – there must be an understanding that rapidly increasing demand within one demographic may cause an unintended consequence for others. Ultimately, with an ever-growing population, greater emphasis needs placing on ensuring there is a considered range of new sustainable housing being built at a rate that keeps pace with demand.”

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