The latest index from Halifax House prices showed house prices increased by 7.3% in the year to September, the steepest annual increase since June 2016. The average UK property price reached £249,870, as mortgage applications were at a 12-year high.
Month-on-month house price growth was 1.6%, which was unchanged from August.

Halifax said: “September saw a third consecutive month of substantial gains. The annual rate of change will naturally draw attention. Context is important with the annual comparison, as September 2019 saw political uncertainty weigh on the market”.
Moneyfacts report that average mortgage rates have risen for a third consecutive month and the number of available products has fallen.

The average two-year fixed-rate mortgage for all LTVs rose by 0.14% while the equivalent five-year fixed-rate increased by 0.13%.

The average rate is now 2.38% for two-year fixes and 2.62% for their five-year equivalents. However, these are still lower than the rates offered in March this year.

Moneyfacts said: “This increase in rates is likely in part due to the proportion of a rate that a provider needs to attribute to the risk of default, which may be a concern as a result of the economic outlook remaining so unclear. For example, the spectre of negative equity should house prices drop from their current levels is one that responsible lenders will be keen to mitigate yet have no control over.

Similarly, uncertainty around future employment levels and income as government support schemes begin to unwind is another factor lenders may be considering.”

Meanwhile, product availability has continued to decline for the fourth consecutive month to 2,259, the lowest figure recorded by Moneyfacts since May 2010, when 2,087 deals were available. This represented a 54% contraction in the market compared with October 2019, when there were 4,955 products available.

Looking for Mortgage Advice?

If you’d like to get professional advice on mortgages to purchase your first or next home in East Sussex or Kent, we’d be delighted to help you. Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage advice, early retirement advice, pension advice and more.

We often visit clients (or carry out video calls during the pandemic) from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield. Please contact us to arrange a free initial mortgage review.

Please read our VoucherFor reviews here.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.

It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.

The information contained within the blog is for information purposes only and does not constitute financial advice.

The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.