Lenders cut more mortgage rates If you have the money for a large deposit, some rates are below 6% Another round of rate cuts has been announced by the Halifax, one of the UK's biggest mortgage lenders. Several of its most popular fixed or tracker-rate deals are being cut by an average of 0.25%, for borrowers who can put down a deposit of at least 25%. The changes apply to deals arranged through mortgage brokers. The new rates highlight the trend of recent weeks in which many lenders have made a succession of small reductions to cut headline rates to 6% or less. "We are simply passing on the recent cut in swap rates [the cost of borrowing between banks]," said a Halifax spokeswoman. Wider range In the past week, other lenders, such as the Newcastle building society, Yorkshire building society and the nationalised Northern Rock, have also reduced the cost of some of their deals. "Most lenders have been cutting selective rates rather than everything," said Ray Boulger of mortgage brokers John Charcol. Other lenders, such as the Bristol & West, Woolwich and the Coventry building society, have also started to widen the range of mortgage deals they offer. For instance, the Coventry, and also the Britannia building society, now offer their best deals to customers who can put down a deposit of at least 50% of a property's value. Mr Boulger said lenders now appear to have become a bit more relaxed about lending than they were earlier in the year, with the cost of loans where customers put down a 10% deposit also becoming cheaper. "More lenders will come in with cheaper fixed rates in the next week or so," he predicted.   BBC August 2008      Better outlook for mortgages (July 2008)   The outlook for mortgage rates has improved thanks to a dramatic fall in swap rates over the last month. Rrecent news that Nationwide is to cut both tracker and fixed rates could be a sign of things to come. For far too long, the status quo of the mortgage market has been increasing rates and misery for most borrowers. The crunch has seen liquidity in the market all but dry up, but news from Nationwide that they are cutting both tracker and fixed rates will come as a huge relief for all borrowers. Swap rates have dropped by 0.7% from a peak a month ago. As lenders use these rates to determine the price of their fixed-rate mortgages, it should allow them to offer better priced products, as Nationwide has. I would hope to see other lenders follow suit soon bringing some much needed competition to a market that has been depressingly bereft of vying lenders. The good news does not stop at just fixed rates either. Nationwide has also reduced the price on its tracker mortgages with the most significant movement on its lifetime tracker, coming down an impressive 0.36% to Bank Base Rate plus 0.98% for those with a 25% deposit – albeit with the introduction of a modest £599 arrangement fee. With the Base Rate likely to fall soon, according to industry experts this deal should be good value for borrowers happy to sacrifice the security of a fixed rate. Yet, with the ability to drop into a fixed rate at any time, this does offer the added security that some people will crave.             Borrowers could save money by using a broker   Borrowers could save up to £1,830 per year if they went to a mortgage broker instead of going direct to a lender, according to the Association of Mortgage Intermediaries (AMI). The figure reflects the difference between the average cost of a Standard Variable Rate (SVR) mortgage – most frequently offered by lenders – compared to a fixed rate, which is the most popular choice offered by mortgage brokers or intermediaries. According to AMI, the average annual saving achieved from getting a mortgage through a broker is £962 per annum. With just under 1.36 million intermediary mortgage sales in the 2006/07 financial year, the savings achieved by brokers for their clients amounts to between £1bn and £1.2bn per year. Chris Cummings, director general of AMI, said: "Intermediaries are able to identify the most suitable product for the consumer at a competitive price. Independent research suggests intermediaries could save consumers £1,830 per year compared with going direct to lenders. In these difficult times it is more important than ever for consumers to access good financial advice.”     House prices 'to breach £300,000'

The average cost of a house in England will break through the £300,000 mark in the next five years, research suggests. The National Housing Federation (NHF) warned prices were now almost 11 times the average wage and may rise by 40% as supplies fall further behind demand. To avoid a looming crisis the NHF urged the government to act on its promise to build three million homes by 2020. Recent rising interest rates and repossessions have led other analysts to forecast falls in house prices. The NHF said a housing crash was unlikely despite first-time buyers finding it tougher to afford a home. According to the report many of those priced out of the housing market are now turning to the social housing sector - as a result housing waiting lists have grown by 57% over the past five years to 1.6 million households - or four million people. Upward march In the 10 years since Labour came to power house prices have surged by 156% while wages have risen by just 35%, research for the NHF carried out by Oxford Economics found. If such trends continue, prices will near the half a million mark in London by 2012, from the current average of £318,864. Even in regions traditionally regarded as cheaper - such as the North West and Yorkshire - average prices will break through the £200,000 level. "Our report shows that continuing house price rises and the resulting housing crisis are set to stay with us for a long time," said NHF chief executive David Orr. And while homeowners may view the surge in prices as good news, Mr Orr did warn they carried a "sting in the tail". "A growing number of parents will find themselves subsidising their sons' and daughters' mortgages," he said. "And, across the country, more and more people are going to find themselves priced out of the property market - and struggling to find a decent home." Construction drive In order to tackle the problem the government must press ahead as soon as possible with its plans to build more homes - and make sure an additional 70,000 social homes are built each year, the NHF report added. The government vowed to act to tackle the country's property problems with the publication of the Housing Green Paper last month. Among the proposals were plans for more than 70,000 affordable homes a year to be built by 2010/11. The building drive aims to tackle housing supply problems - local government figures show there is demand each year for 210,000 homes, but only 165,000 are being built. Source BBC August 2007