Mortgages ‘to become more affordable’

The affordability of mortgages in the UK is set to improve as the recession ends, it has been predicted.

Head of consulting at property investment firm Ducalian Timothy Lambert said that the recession has restricted the ability of many households to buy homes, noting that some families have been affected by a loss of income through pay cuts or job losses.

But this will not last, he stated, adding: “The economy will recover and as such people will buy again.”

Mr Lambert said his firm advises those looking to take out a mortgage not to look for a short-term gain, stating that the consensus is that prices will not return to 2007 levels until 2014.

Even so, trends such as a rising population will push them up over the longer term, the expert predicted.

Mr Lambert’s comments came after a study by Halifax showed this week that house prices have risen by 2.7 per cent a year on average, compared with a two per cent rise in annual incomes.

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