Can a loan offer be withdrawn? Experts respond as thousands of deals closed | Personal finance | Finance

In response, she said, “Don’t make offers on properties without talking to your adviser again. Go back to your advisor and ask him to check if the loan is still affordable and also if the monthly repayments will still be manageable for you.

How could the market evolve over the next few months?

Market analysts predict that lenders will continue to pull fixed rates until the market stabilizes to some degree.

mortgage manager at Capital of Hoxton Maria Fadeeva said: “Within a few weeks, the number of options for our customers has decreased significantly. An increase in interest rates also affects the income to loan amount ratio.

“Going forward, customers will see the amount they can borrow against their income drop, compared to earlier this year. The same can be said with respect to investment properties.

“The market is volatile and tight, just be prepared that it’s not the end of rate hikes and plan accordingly.”

The housing market could also experience a drop in demand, which many believe could have a ripple effect on house prices.

Mr Megson told “People just won’t move if they don’t have to, so demand will fall. Supply may well increase as some people may unfortunately have to sell if they cannot afford the raises, and they may be under financial pressure to do so.

“It could lead to lower prices. I’ve seen forecasts ranging from 10 to 25%, but I don’t know what they are based on, because no one knows.

“Prices have been abnormally high following the housing boom over the past two years, so in many ways people would see this as a correction of those over-inflated prices and a return to some level of house prices” normal”.

“However, others will say a drop is a drop, and for many people that would impact their ability to move or remortgage in the short term until prices recover.”

What could borrowers do now to protect themselves against higher rates?

Ms Fadeeva said: “Borrowers whose mortgages are coming to the end of their current rate should start looking at options now.

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