Mortgage demand will rise when inflation drops in 2012 - Bean


Deputy governor for Monetary Policy at the Bank of England Charlie Bean has said lower inflation next year should both support the mortgage market and consumer spending.

As household incomes become less squeezed, that will help those saving for a deposit or hoping to move further up the housing ladder, he said. The transition from a mortgage market with generous loan-to-value and loan-to-income ratios, to a more sustainable, less risky "equilibrium" continues, he said. On the projected decrease in inflation, Bean said: "As well as supporting consumer spending, it should also help support mortgage demand. That would, no doubt, be a most welcome development to you, as well as to the households themselves. Bean also floated the idea of a cash voucher ...

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