Property Rescue Blog

The UK’s biggest lender, The Halifax, announced that house prices grew at their slowest pace during May with an increase of just 0.3% from the previous month. The figures for April had shown a growth of 0.9%, so this is a significant drop.

Perhaps the effects of higher interest rates are at last seeping through into the market place, although yesterday’s news that the Bank of England has chosen to keep rates static for now will be welcomed with a sigh of relief by those with costly mortgages.

What is less clear though, is the impact that will be felt later on this year as many fixed rate mortgages come to an end. Two years ago, interest rates were low and loans were on offer for around 3.5 or 3.9%. Some of these fixed rates are due to end soon and the hike in mortgage payments that will result when rates return to today’s levels is bound to leave some homeowners short of cash.

Most people will be able to cut back on expenditure and meet the new repayments but for a minority whose outgoings are already stretched to the limit, the sudden rise in mortgage payments could mean a cash crisis. If you are in a position where you can’t meet your mortgage payments and need to sell up quickly and move on, Property Rescue guarantee to make an offer to buy your home, no matter where it is or what condition it is in. Contact them for more information.