Optimism for the UK Housing Market

According to Halifax House Price Index, UK Housing Market prices rose by 1.2% in June. They still remain 3.5% lower  than  this time last year. In June the average house price in the UK was £163,049. According to sources, average tracker and fixed rates have fallen to some of the lowest levels ever. The average for a 2 year fixed rate is at 4.32%, a 3 year fixed rate standing at 4.92% and 5.29% for a 5 year fixed rate. The average 2 year tracker is at 3.37%.

The reduction of rates maybe because of the reduced expectations of the increase in the Bank of England Base Rate. This reduced expectation has meant that the cost of lending money for the banks has reduced on the SWAP markets.

What is encouraging is these cuts are being passed on to all loan to values. This is great news for First Time Buyers who have seen rate cuts on lower LTV bands but not for people with smaller deposits.

The mortgage lenders however, are not passing on the full cuts in interest rates due to the increased pressures and costs that the banks are facing. As mortgage rates are slowly reducing as soon as there is some hint that rates are going to go up the mortgage lenders will start to increase their rates.

Not all lenders are reducing their rates across all product’s, some are keeping the rates the same for people with larger deposits but are reducing them for higher LTV’s. It is a good time to review your mortgage due to the reduction in rates and them being historically low. Make sure you don’t miss out and talk to an advisor.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
There may be a fee for Mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £250