Falling interest rates sparking increased activity in property market
Plummeting interest rates are having a dramatic effect on Britain's property market, it has been claimed.
New figures suggest that banks are becoming more and more willing to offer affordable mortgage deals to Brits, as they are forced to continue slashing rates of interest. This is despite the price of houses for sale in Newcastle and throughout the UK continuing to rise.
Richard Sexton, who is a chartered surveyor for online business e.surv, is in no doubt that shrinking interest rates are playing a key role in this boom.
Speaking to express.co.uk, he explained: "Banks are lowering rates and increasing the range of mortgages on offer. House prices remain high, with each month bringing fresh rises, but banks are now more willing to lend to buyers with smaller pockets.
"They've had time to build capital buffers and restructure in answer to the demands of new banking legislation. Now they've emerged from the gloom and are increasing mortgage lending once more."
Expressandstar.com reports that the increased availability of low deposit mortgage deals is also fuelling the increase in buying activity. At the time of publication, there were 443 different products on offer which require a ten per cent deposit or less.