Mortgage repayments to fall while house price growth slows

Tue, 09 Aug 2016

Mortgage repayments to fall while house price growth slows
The Bank of England cutting the official interest rate from 0.5 per cent to 0.25 per cent has meant that the mortgage bill for millions of borrowers will drop, with Mark Carney, the Bankís governor, saying banks have "no excuse" to not pass on the rate cuts to borrowers.

It has been reported that the interest rate cut will take off £22 from a typical monthly mortgage, although there are only 1.5m mortgages which automatically track the Bank of Englandís rate. The 3.5m borrowers with a variable-rate mortgage may also find their rates realign to match the Bankís interest rate, according to the Council of Mortgage Lenders.

Those who have a fixed-rate mortgage (which is around 50 per cent of all mortgage holders in the UK) will not see a change, however.

The Bank of Englandís decision received unanimous approval from all nine members of the Monetary Policy Committee (MPC), and it is the first time since March 2009 that the interest rate has been changed.

Meanwhile, Halifax, the largest mortgage lender in the UK, has revealed that the growth of house prices appears to be slowing.

House prices in July dropped 1 per cent on the previous month, although they remain 8.4 per cent higher than the same time last year.

However, Russell Quirk, founder of eMoov, the estate agency, said: "Although it would seem the UK property market has lost steam since the vote with prices dropping 1% since last month, the summer period is always a traditionally slower time of year for residential property transactions."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.



Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch