Affordability of mortgages ‘will improve’

Britons are likely to see mortgages become more affordable as the country comes out of recession, an expert has noted.

Timothy Lambert, head of consulting at Ducalian, explained that that rising interest rates will cause problems for many households in the short term.

“We will see more repossessions as mortgages become unaffordable for some families who have had wage cuts or even gone from two salaries to one as a result of the recession,” he said.

However, this situation is expected to improve as the economy continues to recover and Mr Lambert suggested people will be able to buy again.

He was commenting after Halifax revealed the extent of house price rises to have taken place over the last 50 years.

Since 1959, the average property in the UK has increased by 273 per cent – at a typical annual rate of 2.7 per cent – after allowing for retail price inflation.

By Andy Mackay