An extended period of interest rates remaining at an historic low would see mortgages continuing to be "very affordable" for those with sufficient deposits, it has been claimed.
According to Lucian Cook, director at Savills, the predicted low rates confirm that the mortgage market is now underpinned by consumers' ability to access an adequate deposit, rather than their capability to afford a mortgage .
"In the current environment, it is not whether they can service the mortgage; it is whether they can raise the deposit to move," he commented.
"There has been a shift from mortgage interest affordability to deposit affordability."
Meanwhile, the British Bankers' Association revealed recently that the annual growth in the banks' net mortgage lending is 4.1 per cent, compared to 1.1 per cent for the whole mortgage market in May.
The association attributed this to the abolition of home information packs and a reported increase in the number of house sellers, which is expected to encourage activity in the UK mortgage market.
Low interest rates mean mortgages should remain very affordable
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Low interest rates mean mortgages should remain very affordable
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