Tag: property

The UK’s prospective home buyers and sellers are in ‘wait-and-see’ mode as house prices held steady in May amid uncertainty about the general election and interest rates outlook, new figures show.

But experts predicted a surge in demand could be on the way soon, once the general election is out of the way and interest rates start falling.

The latest House Price Index from the country’s biggest mortgage lender Halifax shows that the average house price across the UK ticked down by just £170 in May. A number of estate agents reported quieter activity in what is traditionally a busy month for property moves.

The average house price across the UK came to £288,688, close to flat month-on-month and up 1.5% from last May. In London, prices were close to flat year-on-year, with the average home costing £536,821. With average wages growing by 6% year-on-year, according to the ONS, the figures suggest properties are getting more affordable.

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The amount of arrears on mortgages ballooned 44.5 per cent in the first three months of this year as homeowners struggle with higher rates, Bank of England data has revealed.

Outstanding arrears increased to £21.3billion, up 4.2 per cent compared to the final three months of 2023 and up 44.5 per cent compared to the first three months of that year.

It is the highest total amount of arrears recorded since 2014.

Homeowners coming to the end of fixed-term deals agreed when rates were much cheaper and needing to remortgage continue to face payment spikes. 

Separate research released today by rates monitor Moneyfacts Compare suggests those who are coming to the end of a five-year fix this month can expect to see the interest they pay almost double, with average rates rising from 2.85 per cent then to 5.5 per cent now.

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Santander has cut selected fixed rates for residential purchase and remortgage, in welcome news for borrowers looking for a new home loan. 

The bank, the fourth largest mortgage lender, has cut its five-year fixed rate with a £999 fee for home purchase from 4.38% to 4.28%, for buyers with at least a 40% cash deposit (60% loan to value). 

Its two-year fixed rate for purchase with a £999 fee has been cut from 5.18% to 5.11% (85% LTV).

The bank’s purchase deals for new build properties have also been reduced. For example, it is now offering a deal at 95% loan to value at 5.87%. The deal has no fee and pays £250 cashback on completion. 

In addition, the 95% LTV three-year new build fixed rate with no product fee and £250 cashback is 5.87%, down from 6.01%.

The rate cuts come as other lenders have been increasing their fixed rates (see stories below). This is because the market increasingly feels the Bank of England won’t cut interest rates when its Monetary Policy Committee (MPC) meets on 20 June. 

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