Three UK mortgage rate predictions for 2012

UK mortgage rate predictions for 2012 include stable house prices and interest rates, but tougher mortgage lending criteria.

Gary Styles is head of strategy, risk and economics at Hometrack. In his UK mortgage rate predictions for 2012, he advises of a modest recovery along with a prolonged period of stable interest rates and modest house price decline. He feels it is likely that interest rates will stay low and adds, there is the possibility that the Bank of England will consider a modest easing to 0.25 per cent during the course of 2012. He concludes that a more optimistic assessment for the housing market will only be possible when the UK economic strengthens.

Robert Gardner is the Nationwide Building Society 's chief economist, he advises in his 2012 UK mortgage rate predictions that the outlook for the UK housing market is uncertain and predicts that the market likely to remain soft, with prices moving sideways or drifting modestly lower. An ultra low interest rate environment is likely to persist through 2012. He adds that the Bank of England needs to be convinced that the UK recovery is gaining momentum before it will contemplate an interest rate rise and he feels this is not likely to happen until 2013.

Martin Ellis is the housing economist at the Halifax, in his UK mortgage rate predictions for 2012 he advises of a weak economic recovery and continued pressure on householders' finances. He adds that these factors will constrain UK housing demand. Low interest rates he feels, have helped to support the market. His prediction is for the exceptionally low official interest rates to continue for the foreseeable future which will support the market in the face of a very difficult economic climate. In his opinion, house prices will be stable in 2012 with prices ending the year at levels close to where they began.