The mortgage war is raging, but lenders need to be careful

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Experts are confident that the market will hold out despite the projected rise in unemployment and the termination of stamp tax benefits. One of the bank’s executives says that he just bought his first home, so he is putting money wherever he needs to go. The UK’s largest bank, Lloyds, which had the busiest month to complete mortgages in June since 2008, expects activity to remain “stable” for the rest of the year due to changes in lifestyle. He estimates that house prices will rise 5.6% this year, well above the 0.1% decline forecast a year ago. Many more people will enter the market in the coming months.

This is where growth-promoting banks need to be honest with the customers they offer their bargains to. Pandemic Housing prices have skyrocketed in the UK, and given the extremely unusual economic circumstances, no one can be sure exactly how the boom will end.

Economists have warned that house prices in advanced economies could be overpriced by about 10%, and inspectors sent to review property assessments by lenders find that the agreed-upon numbers do not always match. Listing prices may have been set by real estate agents trying to win business in a market with chronic inventory shortages.

Bank executives, asked about their controversial role in the housing boom, say they learned a lot from irresponsible lending in the years leading up to the 2008 financial crisis, when houses in advanced economies were overvalued 13-15%, and that they are much more careful about who they lend to.

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