RICS comment on CML regulated mortgage survey

Commenting on the CML regulated mortgage survey, Oliver Gilmartin, RICS senior economist said: "The threat of further interest rate rises has clearly hit home for those buying their first property. With first time buyers now needing to borrow record multiples of income to get a foot on the property ladder, it is little surprise that four in every five are taking out fixed rate deals. The price of fixed rate mortgages has risen consistently in 2007 and is set to rise further as interest rate rises and lingering inflation concerns raise longer dated borrowing costs. With affordability the worst in over a decade and some homeowners fearing the end of current fixed rate arrangements, holidays at home may be all the rage this summer."