HSBC temporarily removes mortgage products for new customers, as borrowers face higher rates
- HSBC temporarily withdraws mortgage deals for new borrowers
Rating agency Moody’s has added to the dilemma facing UK housebuyers, by predicting prices will fall 10% over the next two years.
Moody’s believes that persistently high inflation and the recent spike in lending rates will trigger a correction in the UK housing market.
The combination of less affordable mortgages and high inflation putting a dent in incomes will trigger a correction in the UK housing market.
The relatively large share of short-dated or variable-rate mortgages exposes the existing stock to tightening monetary policy. Strong fundamentals such as a robust labour market, tight underwriting standards and housing supply shortages will prevent more severe credit implications.
Continue reading…
