Comments : Latest housing market and mortgage figures
The average cost of a property is currently £164,153 according to the Nationwide Building Society after house prices rose 0.6% in October after a previous 0.4% fall in September.
Nationwide’s monthly house price index highlighted the fact that property prices were down 0.9% year on year but the three month figure should a positive rise of 0.5% since January. The figures are based on mortgage approvals over the past month but borrowing remains slow despite the efforts made by the Government to boost the number of loans available through the Funding for Lending Scheme.
The Bank of England’s figures show that 50,024 loans for house purchases were approved in September compared to a long term average of over 80,000 per month.
Tesco unveiled their record low mortgage deal last month which is utilising the Government's Funding for Lending Scheme and providing the lowest fixed rate mortgage deal but only to customers with a 40% deposit even though the Government's scheme is designed to help first time buyers who may struggle to secure a mortgage.
The details of Tesco’s latest mortgage deal are as follows; it is a two year fixed rate mortgage priced at 1.99% to customers borrowing a maximum of 60% of the value of the property but Tesco also have a mortgage deal with a higher rate for those who have a 30% deposit.
The Funding for Lending Scheme was launched two months ago where lenders, such a Tesco, can borrow money from the Bank of England at below market rates so they can provide cheaper loans for aspiring home and business owners. However, it has failed to lift the housing market as the figures from the Council of Mortgage Lenders shows that mortgage lending fell 10% in September when just £11.6 billion was lent to home buyers.
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