According to the Department for Communities and Local Government (DCLG) the average house price in the UK in May 2007 now stands at £209,454 (£218,225 in England). UK annual house price inflation rose by 10.9%. Annual house price inflation in London rose by 14.5%.
The price of a typical house increased by the equivalent of £45 per day during the last 12 months.
The average Mortgage Interest rate at the end of June 2007 was 5.8%.
The Nationwide said that house prices managed a seasonally adjusted gain of only 0.1% in July, the slowest pace of growth since April 2006. The marked slowdown brought the annual rate of house price inflation down to 9.9%.
It is estimated that over the next 18 months, nearly two million borrowers will see their fixed rate mortgage deals expire. They will need to budget at least £100 / month more than they are currently spending and may also need to pay re-mortgage and / or large arrangement fees if they want to fix their mortgage for an additional period.
Average national asking prices in July 2007 rose by just 0.3% (£684), the lowest monthly rise this year.
The average loan approved for house purchase in June 2007 was £159,600, some 16% higher than a year earlier.
Gross mortgage lending reached a new record of £34.2 billion in June - up from £31.4 billion in May - according to data from the Council of Mortgage Lenders.
Britain's housing stock is worth a total value of £3,915 billion – up 10 per cent on the previous year
34% of mortgages taken out by home movers in May 2007 were “interest only” mortgages compared with only 12% taken out in June 2003. 27% of these “interest only” mortgages were taken out without a repayment plan specified to repay the capital.
Banks and building societies will hand out £1 billion every day this year in the biggest-ever home loan bonanza in Britain. The Council of Mortgage Lenders said 2007 will be a record year with an extraordinary £360 billion borrowed in mortgages.
Thank you to Oliver Downing of the Insolvency Network for this information
www.insolvencynetwork.co.uk |