Mortgage predictions for 2012

Thinking of buying a house in the New Year? Will prices rise, will they fall, will banks loosen up on their lending grip or will the euro crisis keep banks and lenders at bay?
We look at some expert predictions for 2012.
Mortgage optimism for 2012
Independent mortgage experts John Charcol are optimistic about the future of mortgage lending.  Whilst many leading experts report gloom and doom over the market, John Charcol suggests that there are an increasing number of lenders who have returned to 90% loan to value.
Simon Collins Product, Technical Manager at John Charcol said, ìDespite the approaching festive season, we have seen the number of good quality purchase enquiries hold up very well, so whilst the marketís not great, itís not as bad as itís being painted.î
Looking ahead, term tracker mortgages could be popular as people are looking for a long-term solution instead of remortgaging every 2 years. 
ìTerm trackers, in light of predictions for the bank rate increase being put back to the early part of 2014, and continuing concerns over the availability of future credit, are particularly popular,î Mr Collins continued.
Mortgage pessimism for 2012
The Financial Services Authority (FSA) mortgage lending data suggests that the future is not that bright however. FSA research found that the proportion of new lending done at an LTV of 90% has remained at 2%, as it has been all year.
Lenders have made it much tougher to take out cheap interest only loans and to make matters worse they still have a light grip on their finances. The Eurozone debt crisis is having a significant impact on the banking industry, which will only put more pressure on financial products which are readily available to the consumer.
Mortgage payments
The Council of Mortgage Lenders has found that persistently low interest rates have helped reduced mortgage interest payments. This means that monthly mortgage interest payments are the most affordable for 8 years!

With experts predicting that interest rates will not rise until at least 2013, 2012 looks set to continue offering homeowners low interest rate repayments on their mortgages.
To buy or not to buy?
There is a growing interest from buyers as the demand for affordable housing has increased. The end of the governments stamp duty freeze in March may prompt buyers to snap up properties before the stamp duty holiday expires on 24 th March.
Despite this moving the cost of moving is horribly expensive with sky high deposits and house prices, although falling are still relatively expensive.

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