Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), comments on the latest rise in UK house prices in the Nationwide House Price Index for June:
“The pace of house price rises continued to pick up in July, with Nationwide reporting the strongest rate of annual growth in nearly three years. Thankfully for borrowers, mortgage rates are continuing to drop with similar speed. The latest rapid round of rate cuts has seen fixed rate deals fall as low as 1.49% which is new and unchartered territory.
“As buyers look to make the most of the knockout deals it’s important to consider fees which can outweigh the benefits of the headline rate. With so many competing offers, guidance from specialist brokers is becoming essential to help borrowers find which package best suits their finances.
“Government action has certainly affected the mortgage market: Funding for Lending celebrated its one year anniversary this week, while the Help to Buy scheme is continuing to attract interest from lenders and borrowers. With house prices likely to rise in the second half of the year, now is the time for any homebuyer who can afford a deposit to spring into action.”