Looks like the Bank of England is about to loosen mortgage borrowing requirements and some lending institutions are already considering 50 year fixed interest rate mortgages, which will considerably help those first time buyers. With stimulated demand and a larger mortgage potential will come the inevitable house price inflation. Whilst this is good news all round, one has to wonder with this type of house price stimulation is to bolster inheritance, CT and Capital Gains taxes for the Treasury, that is pretty annoyed that hundreds of billions increase house prices is going untaxed at the moment. Some estimated £750bn increase in the average house prices alone over the last 12 months or so.
