Mortgages Uncovered

Confidence in the UK housing market has not picked up as house prices fell by another 1.8% during February say a survey by Nationwide building society.

The high street mortgage lender claims that the average UK home has fallen by 17.6% over the past year to an average of £147,746.

Interest rate cuts mean that mortgage repayments are much cheaper for some but as far as house sales are concerned it has not made an impact.

Chief economist at Nationwide Fionnuala Earley claimed that falling prices and lower interest rates should mean that sales will start to pick up once confidence returns to the market.

“Further cuts in [interest] rates will be welcome in the housing market, but the economic conditions that require them will mean that there is unlikely to be a swift turnaround in the housing market in 2009,”

Those with properties in London could really benefit to the significant monthly cut in costs to their mortgage bills as an average people have seen cuts of around £350 since the end of 2007.

“It is too early to say that the market has reached its trough, given the economic recession. However, falling house prices and interest rates have made the situation for borrowers today much easier than it might have been,” said Ms Earley.