With inflation now steadying, Propertymark has called for lenders to develop more affordable mortgage products to help ease borrowing costs and inspire consumer confidence.
The news came as Halifax pledged to cut interest rates on some products while, many competitors have implemented higher rates.
The move was targeted to assist first-time buyers and those remortgaging their homes, although the new prices have not been published yet.
Also widely reported within the news is the topic of 99% mortgages, aimed at assisting first-time buyers attaining their initial step on the property ladder.
If approved, the scheme could drive up demand and contribute to artificially inflated prices.
Nathan Emerson, CEO at Propertymark, said: “Propertymark is keen to see first-time buyers assisted with their property buying journey and lower rate mortgage products are always an encouraging first step to boost affordability for many.
“It’s important any additional incentive schemes are well thought out and structured in a way that supports the wider housing market, there must be an understanding that rapidly increasing demand within one demographic may cause an unintended consequence for others.
“Ultimately with an ever-growing population greater emphasis needs placing on ensuring there is a considered range of new sustainable housing being built at a rate that keeps pace with demand.”
