According to reports in the media, HSBC have cut rates on 31 of their mortgage products with even their five and ten year fixed rates coming down. Other lenders cutting their mortgage interest rates include the Coventry Building Society, Barclays and Virgin Money. Overall this is good news for first time buyers looking for a mortgage or those looking to re-mortgage. When the biggest lenders start cutting rates, others tend to follow suit to compete. Not every mortgage company appears to be cutting rates, however, with Paragon Bank upping its rates along with a small number of other mortgage lenders.
Annual house price growth slowed to 2.5% in the year to December in the UK as a whole which represents the lowest rate of annual house price growth since 2013. The Office for National Statistics (ONS) has raised the possibility of a house price slowdown this year as the slowdown in London and the South East continues.
If mortgage interest rates remain low for the rest of 2013 and the Bank of England decides to hold the base rate at current levels, any positivity post Brexit could see a property market rebound and a more positive outlook in the spring. Housing markets tend to be driven by how easy it is to borrow and good employment prospects and with UK employment and earnings at record highs, demand for property will likely increase and continue pushing up prices in the process. As ever those in a position to qualify for a mortgage or re-mortgage an existing property should shop around to take advantage of the best interest rates available. An independent mortgage broker will be able to look at the whole market to find the best mortgage deal.
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