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.
