House prices dropped in October compared with the previous month as the property market saw an autumn fall, according to the Nationwide Building Society.
The building society said that prices were down 0.7% compared with September, with the average house now costing £164,381. The average home still costs 1.4% more than it did a year ago. “If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010,” said Nationwide’s chief economist Martin Gahbauer.
The lack of finance for first-time buyers has been highlighted as a reason for the fall. Aaron Strutt, a broker at Trinity Financial Group, says: “ There are mortgages available for first-time buyers but they will need at least a 10% deposit.
Not all lenders are keen to offer mortgages to borrowers with small deposits, but there are options available. One great guarantor mortgage we can access is available up to 95% loan to value. The rate is a market leader at 4.99% and it is fixed for three years – the arrangement fee is £495.”
October 29, 2010