Mortgages and house prices fall in October
The number of loans approved by banks has reduced along with an unexpected fall in house prices for the month.
The British Bankers Association (BBA) has released data showing mortgage approvals from banks are 375 lower in October at 42,808 loans when compared to September.
A lower number of mortgage approvals could be due to banks being more cautious although figures are 33% higher over the year for first time buyers, home movers, remortgage buyers and buy-to-let landlords.
Some lenders may be reluctant to lend if homes look overvalued.
Also some homebuyers may be delaying decisions until further details are released about the government’s Help to Buy scheme.
House prices also lower
The Land Registry have revealed that house prices have fallen by 0.2%, the first fall in the last eight months.Average house prices for England and Wales is now £165,515.
Even with the fall this month, house price inflation is up 3.1% for the year. In London prices are up 8.7% for the year with average prices of £290,720.
Rising house prices allows the equity release buyer to access money with a lifetime mortgage and use this to consolidate debt, for home and garden improvements or holidays.
For remortgage buyers higher prices in London give them an opportunity to release capital which they can use to improve their home such as an extension, new kitchen or bathroom.
In other parts of the country prices were lower such as the north-east where the Land Registry a monthly drop of 3.1% and an average house price of £96,179.
The fall in house prices means first time buyers makes it easier to buy requiring a smaller deposit or lower household income to purchase their first home.
The Land Registry figures includes houses bought for cash, as well as purchased with mortgages.
They are based on the actual sale prices in comparison to the Office of National Statistics (ONS) figures which are based on mortgages completed.
What are your next steps?
Call our LCM mortgage brokers if you are a buy-to-let landlord with a property, remortgaging and want the best mortgage deal, buying your first home or you are planning to move home.For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your home to spend on anything such as pay for care at home or even help your children start or expand a business.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage cost calculators, property value tracker chart and equity release calculator.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
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Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.
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