7
Apr
Property prices 'to stabilise' through mortgage boost
The return of more competitive mortgage rates to the market is just
what is needed to ensure stability in house prices or even
increases, it has been stated.
Head of mortgages at financial advisory firm Bestinvest Peter
O'Donovan said lenders will not have planned the greater
availability of such products "in a week" but will have thought
matters through, while being encouraged to lend more by the
government.
Raising the number of house purchasers "means first-time buyers",
he added.
Reflecting on recent Bank of England statistics showing a rise in
mortgage lending, he commented: "If there are more buyers then it
means that eventually the prices are going to at least stabilise
and then hopefully start to increase."
Mr O'Donovan was commenting in the wake of Abbey offering a new
product at 85 per cent loan-to-value for first-time buyers.
The deal was set at a rate of 5.84 per cent, fixed over four years
with a fee of £495.
