Rising interest rates will not hurt the real estate market, loans …

Figures from the Building Societies Association show that the housing market continues to grow, with gross loans from building societies up 22% in the third quarter of this year, compared to the same period in 2020.

During the third quarter, companies approved 109,575 mortgages, about four percent more than in the third quarter of 2020; and building societies hold outstanding mortgage balances of £ 351.2 billion, a 23 percent share of the total mortgage market.

Andrew Gall, chief economist at BSA, said: “The high level of mortgage lending activity in the third quarter by building societies, and across the market, suggests that the declining rights holiday stamp was not a major barrier to ownership. purchase.

“It is likely that households will continue to reassess their housing needs in the post-pandemic world, which will continue to support demand into the new year.

“The Bank of England appears poised to raise the bank rate from its all-time low of 0.1% over the next few months. While this may result in some mortgage rates rising, the vast majority of households are using fixed term products and therefore will not see any immediate change in their monthly repayments.

“Savings balances have also increased at building societies over the period and it is particularly gratifying to see an influx into Cash ISAs, despite a £ 3.6 billion outflow from the market.”

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