Posts with tag: rising interest rates

Mortgage Lending to Hit £286.8bn by 2019

Published On: August 18, 2015 at 8:52 am


Categories: Finance News

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Mortgage lending will grow in the next four years, predicts a report by Timetric, which states that wider economic recovery, a rise in house building and demand-based incentives for the purchase of newly built properties will cause a healthier appetite for buying.

Mortgage Lending to Hit £286.8bn by 2019

Mortgage Lending to Hit £286.8bn by 2019

The report says that the fastest growth in mortgage lending will be in 2017, with an estimated rate of 11.7%. This is mostly due to the Office for Budget Responsibility expecting to see the largest rise in UK house prices over this period.

Timetric forecasts a total of £218.6 billion in gross lending in 2015, before growing to £241.6 billion in 2016 and hitting £286.8 billion in 2019.

However, outstanding mortgage balances are expected to grow at a slower pace. Repayments are likely to rise as stronger economic growth causes an increase in the Bank of England (BoE) base rate and therefore higher mortgage interest rates.

Outstanding balances are forecast to reach £1.33 trillion by the end of this year and £1.39 trillion by 2019.

An analyst at Timetric, Ben Carey-Evans, says: “Rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively.

“Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.

“Growth in the mortgage market will be supported by rising house prices necessitating larger value loans and regional variations in house prices will continue to influence the distribution of mortgage lending.”1 


Landlords confident of financial recovery

Published On: March 18, 2014 at 5:23 pm


Categories: Landlord News

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New research from the National Landlords Association (NLA) suggests that confidence in the UK financial market is growing within landlords.

Raised Expectations

Findings from the report indicate that 31% of landlords would say their expectation of the UK financial market is either good or very good. This is a considerable rise of 21% in comparison to the same survey conducted last year.[1]

Growing faith in the market is underlined further with the news that 27% of landlords questioned said that they plan to add to their existing portfolio in the coming twelve months.[1]

Landlords confident of financial recovery

Landlords confident of financial recovery


Despite the increased belief in the financial market, a number of landlords expressed concerns regarding potential increases in interest rates. 21% of landlords said that they would struggle to keep up with mortgage payments if interest rates rose by as little as 2%. 35% said a rise of 2.5% would cause them financial hardship, with 41% expressing a rise of 3% would be detrimental.

Despite landlords’ concern, The Bank of England stated just last week that interest rates will remain at their current rate of 0.5% until at least late 2015.


Carolyn Uphill, Chairman of the NLA, was understandably pleased with the results of the survey. Uphill said that, “Landlord optimism around the UK’s financial recovery, coupled with the Bank of England’s announcement makes good reading for anyone considering buy-to-let investment. This is evidenced by the significant number of landlords who will be looking to add property to their portfolios over the coming months.”[1]

Uphill warns though that, “interest rates will rise as the economy improves and we move out of recession,” and that, “anyone thinking about buy-to-let investment should do so with a view to long-term sustainability.”