London property distorting price rises

Although there has been a lot of talk about an increase in house prices across the UK during the 2013, when you look closely at the figures, it’s not all quite as rosy for everyone.

According to Land Registry if you are in the North East you will have seen a fall of 1.6%. Most of the driving force behind the price rises have been in the South East and London in particular.

These parts are already the highest within the UK with prices in London rising another 10.6% during the year. This has hugely impacted on the average figures for the rest of the UK. So while economists are pleased with the growth of the UK housing market, the reality hasn’t quite been noticed by the average homeowner in the midlands and above.

Nationwide unsure about Help to Buy

The Nationwide building society has cut some mortgage interest rates for borrowers who are unable to raise a large deposit but they are still undecided whether they are going to join the government backed Help to Buy scheme which is set to launch in the new year.

The Help to Buy scheme is encouraging more transactions by lending up to 15% on a government backed loan to go towards the deposit for the property.

The building society’s new rate for a two-year fixed rate deal for a buyer offering a 10% deposit is 3.99%, with a £900 fee, or a £400 fee for first-time buyers. A number of lenders offer mortgages at this loan-to-value level.