29/07/2010

'Liverpool mortgage rates to remain affordable for buyers'

Mortgage interest rates for buyers in Liverpool and the rest of the UK are likely to remain affordable in the medium-term, according to a new report.

Ernst & Young's ITEM Club forecast has predicted that current interest rates of 0.5 per cent could be here to stay until 2014.

This could mean that managing a mortgage could be much easier, despite tough economic conditions and the looming prospect of spending cuts.

Commenting on the forecast, Savills' director Lucian Cook said that buyers are facing different issues than before in the current market.

"It is not whether they can service the mortgage; it is whether they can raise the deposit to move. There has been a shift from mortgage interest affordability to deposit affordability," he said.

Mr Cook added that the housing market is no longer underpinned by the ability to "service a mortgage" and that house price growth is likely to remain affected by this change.