Experts Predict House Prices Will Not Return To Peak Until 2014
Leading economists are predicting that house prices will fall by up to 10% next year and will not return to their peak until 2014.
This forecast is the result of a survey of 14 major economists and estate agents. They believe that rising unemployment and home loan rationing by the banks will keep prices down.
One company Capital Economics say that the market is overvalued. The company predicts a 10% fall next year although others including Fitch and Savills are predicting a fall of between six and eight per cent.
The Centre for Economics and Business Research are forecasting a 4% rise, while Citigroup say the rise could be anything from five to 10 per cent.
Amid the confusion Nationwide Building Society revealed a fall in mortgage lending and their profits have fallen for the first half of this year.
To get the best deals homeowners and first time buyers must consider saving more and paying a bigger deposit when taking out a new mortgage deal. This will lower both the rate and the arrangement fee.
If you have a 20% deposit one of the best two year fixed rate deals is with Newcastle BS at 4.99% with a £1094 fee. However if you can increase your deposit to 25% you will qualify for a much cheaper rate.
A 25% deposit with Melton Mowbray Building Society charges 3.79% ( fee £695 ) and with Ing Direct 3.84% ( fee £595 )
The best deals are with Abbey and Northern Rock both charging 3.69% with a fee of £799 for Abbey and £799 for re-mortgages and £595 for buyers for Northern Rock.
Our experts here at Mortgage Fox will be happy to help you find the best deal for your individual circumstances.
VIEW ALL NEWS
NOTE: Do not make any financial decisions based on the information on this page. Always take professional mortgage advice first
Mortgagefox offers a free mortgage advice
If you have any questions do not hesitate to contact our independent mortgage advisors at Mortgagefox.
There is no obligation with any of these services, and both are offered completely free. If you have specific mortgage question you want to ask then we will be glad to help.
