Property Prices Set to Rise as Lenders Cut Rates

In a week that the US agreed a tariff deal with the EU and then increased tariffs across the world, markets climbed and then tumbled away.

The Federal Reserve held interest rates in the US and the Bank of England is due to make a decision on UK rates next week, 7^th August.  The Bank of England will be gambling either way as inflation has been climbing but economic slowdown is expected as we head towards another ‘taxing’ UK Budget in Autumn.

Loan Income Multiple Headlines this week:

• House price to earnings ratio at lowest level in over a decade
• Precise ups Loan To Income limit to six with no job restrictions.
• Market Harborough enhances residential criteria with increased income multiples.
• Nottingham BS boosts LTI.
• Family BS boosts BTL and residential affordability.
• Meaning borrowers can borrow even more.

Rates Headlines this week

• Halifax reduces fixed rates by up to 0.28%.
• Coventry reduces all residential and buy-to-let mortgage rates.
• Principality BS change rates.
• Nationwide drops rates to 3.74%.
• TSB cuts product transfer and additional borrowing rates.
• TMW and Virgin Money change rates.
• Nottingham BS cuts rates and adds cashback options.
• Family BS cuts rates.
• Molo trims BTL rates.
• Fleet Mortgages cuts two-year fixes by up to 0.25%.
• Meaning borrowers can afford to borrow even more with lower rates.

Comment

You may not be surprised given the above that most lenders are expecting interest rates to be cut by the Bank of England next week.