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Mortgages and house prices
Mortgages and house prices are two things you need to consider before buying your house. If you are home movers, remortgagers, first time buyers,
council right to buy tenant or a buy to let landlord there are many mortgages and remortgages and quotes available
online in the UK mortgage market. Mortgages rates and interest rates can affect the prices of houses as you will see below.
House Prices Statistics
You will often hear information, predictions and statistics given about house prices in the UK in newspapers or on TV. Many of these
statistics come from The Halifax or The Nationwide who chart house price trends. The information on this page is taken from
http://news.bbc.co.uk/1/hi/business/3371395.stm
House Price Crash?
House prices have risen rapidly over the last few years and this is causing many people to fear a house prices crash in the
near future. However the signs are that the market increase in prices is slowing down but not crashing. The Nationwide
expect house prices to rise by 9% in 2004.
Influential Factors
There are many factors that influence the prices of houses. Mortgages interest rates, the level of unemployment and the level
of affordability are three of these factors.
Current mortgages rates are low although the government seems to be slowly
increasing them. The Halifax stated that it expects the Bank of England to increase interest rates from 3.75% to 4.5% by
the end of 2004. This should not however dramatically negatively effect affordability. Therefore rates are expected to remain
low in 2004, the level of unemployement low and the level of affordability should remain stable.
Regional Trends
The Halifax have also said that properties in the North have seen the greatest house prices rise during 2003, whilst properties in the
South East saw the smallest rise.
How This Affects You
It is important that you chose a mortgage that suits you and that should remain affordable throughout its term. Try not to
stretch yourselves too much when borrowing to meet a house price. Seek proper advice from a specialist before making your decision.
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