Eurozone problems affect mortgage affordability.
Eurozone issues are creating difficulties for mortgage lenders whose costs are increasing which has led to more expensive rates.
The Eurozone is crumbling, Greece's economy is collapsing and Spanish bank rating are to be downgraded.
The area predicted to be most impacted is that of mortgage rates. Despite the base rate looking set to remain low until 2016 the rates charged by lenders for their mortgages are increasing anyway.
The Bank of England warn home-owner they should prepare for increases in their mortgage costs
Banks are finding it tough to loan money cheaply to fund their mortgage offers and so any increased costs will be directly passed on to home-owners through increased rates.
Bernard Clarke speaking on behalf of the CML said that due to the eurozone many banks are now far more reluctant to continue lending to each other.
He added that this could be countered by competing for UK retail deposits, however the risk is this could also push prices up. It is likely higher mortgage costs will result in the coming months.
There is evidence that mortgage rates are already being affected with many lenders introducing increases over the last few weeks. Mortgage rates are on the up and if you need to review then don't delay.
Contact Deal Direct today for an up to date mortgage market comparison.
