Property prices are up by 3.5% according to Nationwide as mortgage lenders offer more competitive loans.
The price of the average home is £170,514 increasing 3.5% in the last year with greater market activity helped by cheaper mortgages from lenders.
Nationwide has said the government Help to Buy scheme was helping to reduce the cost of credit and increase mortgage availability.
There are more first time buyers in the market at 45% in the second quarter which is the highest since 2005. The Bank of England has said average interest rates on a mortgage have reduced to 3.17% the lowest since records began 2004.
Big six lenders dominate
The biggest six lenders account for more than 90% of the mortgage market compared to 77% this time last year according to the Council of Mortgage Lenders (CML). The top six lenders are as follows:
| Top six lenders |
|---|
| Lloyds Banking Group |
| Nationwide |
| Barclays |
| HSBC fourth |
| Santander |
| RBS |
Competition in the market is intensifying forcing lenders to offer better mortgages as homeowners for re-mortgages and first time buyers shop around for the best deals for their needs.
For remortgage buyers at the end of your mortgage deal, avoid the lenders expensive variable rate and switch to a preferential rate to reduce your monthly repayment costs.
London market rising fast
Figures from the Land Registry show London and particularly luxury property in the capital has been driving house price rises in England and Wales.
In London the average house price rise was 6.3% for the year and up 2.1% for the month of July while parts of the north-east and north-west of England, Yorkshire and Wales experienced falling house prices.
The soaring house prices in London could mean first time buyers are priced out of the market making it difficult even with the help of Help to Buy scheme or Shared Ownership.
For home movers wanting to trade up when prices are rising, they may find their next property is more expensive which means they need a larger deposit or mortgage.
Help with the deposit for a new home can come from family members as the equity release buyers access cash using a lifetime mortgage and gift to a child or grandchild the extra deposit to buy their second home.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
Learn more by using the equity release calculator, mortgage monthly cost calculator, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to repay an interest only mortgage, improve your quality of life or gift to a family member or friend.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
