UK housing is one of the most resilient markets around the world that has proved its mettle during and after the COVID-19 led global pandemic. Though the prices of UK properties increased the investment trend continued to shoot up. The mortgage rates are constantly increasing and the cost of lending is also rising. The upsurge will impact the bottom line of borrowers and homeowners alike.
Mortgage rates are already two percentage points higher than at the beginning of the year and it is the biggest quarterly climb in 28 years in the history of the UK housing market, in the first quarter. In other news, the UK government has lately been exploring new ways to allot borrowers large mortgages for the long term – which is expected to encourage more buyers to buy UK properties. Currently, the decision is under consideration and will be made public in the next few weeks.
According to a few industry experts, the Treasury and the Department for Levelling Up, Housing and Communities will jointly review and consider introducing 30-year fixed rate mortgages – with the debt worth almost 100 percent of the property and a new approach to blend renting and owning a property in the UK.