According to the latest statistics released by the Bank of England, demand for mortgages is on the rise. The first two quarters of 2014 have seen a strong performance and demand in this sector. This also applies to rental properties. However there is more to this story than you may expect. Banks are said to be looking at taking on less risk in the months ahead, and this may have a major effect on the level of demand we are currently seeing. More new rules coming into play this week Many people looking for mortgages will already be familiar with the tougher mortgage rules that have come into play. However the Bank of England will be bringing in more new rules that are expected to be announced this week. These rules are designed to reduce the risk posed by large mortgage loans loans that are more likely to be defaulted on as interest rates go up. House prices are still rising The most recent figures have revealed that house prices are still on the up, with prices in London rising by almost twice as much as those elsewhere in the UK. This points to the need to ensure people do not take on mortgages that are any bigger than they can comfortably manage. This is particularly true with interest rates as low as they currently are, although once again there is speculation that rates could rise in the near future. Clearly there are warning signs of all kinds here at the moment. Demand is rising but property numbers are falling The level of demand seen for mortgages at present is very high. However many experts have said the new mortgage rules have caused a delay in the number of applications going through. While facts and figures are sketchy many believe the longer process involved in assessing applications has had a bearing on the latest figures. Furthermore there is every chance that demand for properties could outstrip the available supply. This is definitely the case when it comes to affordable properties, especially if the new mortgage rules reduce the amount that can reasonably be borrowed in this situation. In reality though we shall have to wait another few months to see whether the third quarter in 2014 proves to be as slow as some would predict in terms of mortgage acceptances. Indeed it would seem as though many of the experts are at odds with each other in many ways at present. Is the housing market on a knife edge or not? Will mortgage applications drop in the next few months or not? Will interest rates rise? Will house prices continue to rise, thus making mortgage affordability even more of a concern for those looking to get one? Only time will tell, and for once the stats we have at present dont quite give us the whole picture with regard to looking ahead. Patience and three more months of real experience will tell the tale.