Nationwide: Recession helps keep ‘mortgages affordable’

Nationwide Building Society has announced that interest rates are likely to remain at or near their current record lows for well into next year. Annual house price figures have shown an increase for the first time since March 2008, up 2pc on last year, according the Nationwide’s house price index.

So it means that first time buyers will benefit from Britain remaining in recession, mainly because Bank Rate will stay low and keep mortgage rates affordable. Martin Gahbauer the Nationwide’s chief economist said “as a result, mortgage affordability will remain relatively favourable for both new and existing borrowers.”

Levels off mortgage take ups are still low, and Nationwide have warned that a large influx of property coming to market, would decrease house prices as supply overtook demand. Melanie Bien of Savills Private Finance, a mortgage broker, has agreed that high demand had helped push house price inflation back into positive territory.

To read more on this story go to telegraph.co.uk. Tell us what you think, do you think it’s the beginning of the end to the recession?