As interest rates rise, the market is faring much better than it has before in similar conditions.
This does not reflect solvency fears, but it is a judgement for UK authorities on whether inflation is under control.
Added to all of this, interest rates are higher for the government to borrow over two years than it is over 10 years.In the jargon, the yield curve is "inverted". This is very consequential for banks' business models, their savings rates, and risks to their funding or liquidity.The move so far from just above zero to 5% is the "biggest and fastest move any of us can remember" according to Andrew Bailey, the Governor of the Bank of England.
That is down on the peak last August of £293,992, but still well up on the figure two years ago of £260,358.Is the housing market more cushioned from rate rises? Clearly the prevalence of fixed rates makes a difference. They are extending mortgage terms, offering payment holidays, switching appropriate customers to interest-only deals.They run models of hundreds of thousands of their customers to find the key signs for what might become arrears.
Much of this is automated, and allows early interventions and the consideration of more subtle patterns of spending across the population."Literally the last thing I ever want to do is repossess someone's home," I was told by one top mortgage industry boss. Put another way, will the Bank of England have to raise rates higher than it predicted, to temper demand and spending power in the economy?
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Can’t Men On Love Island Take Rejection?'She was never mine, it was just my turn', said Tyrique about Ella during the Casa Amor recoupling - and we need to talk about it.
Read more »
Blindspot viewers very divided over Ross Kemp's Channel 5 thriller - here's whyRoss stars as washed-up police officer Tony
Read more »
Florence Pugh's latest sheer dress moment is more iconic than ever - here's whyThe actress stepped out at Valentino's AW23 Haute Couture show in Paris...
Read more »
Why James Middleton and Alizée Thevenet's baby name could be differentPrincess Kate's younger brother and his wife are having a baby
Read more »
This is why always having a wee before getting in a car could 'save your life'A health account on TikTok medexplained2you has explained why always having a wee before getting in a car could 'save your life'
Read more »