The Bank of England says Borrowers’ appetite for taking on mortgage debt dropped significantly in the last 3 months of 2014 whereas there appears to have been a binge on unsecured credit. Could this mean that house prices are at a level that Borrowers can no longer stomach? Possibly.However, a cynic might say that with their margins on home loans squeezed Banks are looking to more risky unsecured lending to keep profits up. With overall levels of personal debt remaining stubbornly high paradoxically the Bank of England may yet have to raise interest rates to pre-empt another round of problems with the Banking Sector. Unless you are a cash purchaser then this matters. Mortgage finance has always been the driver for house prices in a normal market. Seven years after the crisis started normality remains some way off.
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