Nick Millican: Examining the Nationwide Rate Rises and Homebuyer Hardship
Nick Millican: Examining the Nationwide Rate Rises and Homebuyer Hardship
This article concerns the current housing industry trends. Nationwide Building Society announced the increase of mortgage rates between 0.3% and 0.3 percentage points on different products, starting from February 2nd. Nick Millican explains that the move to hold the base interest rate at 5.25% after the meeting involving the Bank of England is to be expected.
According to Nick Millican, a seasoned real estate investment manager, their case demonstrates the spiking cost of funds that lenders ought to eradicate. He mentions that though lately mortgage rates have fallen, this has benefited those homeowners in difficulty, all the same, with this action from the Bank of England some rates might increase.
But the impact would probably not be very strong, probably. Nick Millican points out that 2023 will bring many borrowers big challenges as they find the going difficult with the rise in interest rates from very low levels of the last decade. Millions will have to embrace the new realities and realize that it is hard.
The other contrast mentioned is that by the time hopes of an interest rate cut rose to the level that Nationwide started cutting rates in January. Interestingly enough, it is rising at the moment when only the rumor of high rates has set in. For Nick Millican, it is all about the risks in front of the lenders and their need to react and reprice mortgages on the spot due to the market changes.
However, this move will not immediately affect existing trends in favor of more affordable mortgages, but it is still a wise reminder that the value of fluctuating prices is still present. But, Nick Millican finally states, the homeowners will continue to face problems even though the most outlandish rate hike has gone. Attentive surveillance of policymaking flow is a priority.