Product category:
Mortgages / Housing
News Release from: Motley Fool | Subject: Mortgages
Edited by the Insidemoneytalk Editorial
Team on 10 April 2008
Prepare for more house price falls
Fool.co.uk comments on Halifax house price data
David Kuo, Head of Personal Finance at Fool.co.uk, says: " The abrupt monthly fall of 2.5% underlines Fool.co.uk's position that the long overdue correction in house prices could see the value of the average home drop by as much as 20% this year "According to Halifax, house prices rose 1.1% based on quarterly year-on-year figures
This article was originally published on Insidemoneytalk on 27 Mar 2007 at 8.00am (UK)
Related stories
Homeowners shaken by rate rises, says Fool.co.uk
Nine out of 10 first-time buyers opt for fixed-rate mortgages.
But the reality is house prices fell 1.3% on a monthly year-on-year basis.
Fool.co.uk therefore urges mortgage payers to brace themselves for further falls.
"The value of your home is crucial when applying for your next mortgage deal.
It is used to assess the loan-to-value, which is the size of the loan compared to the value of the property.
"The best mortgage deals are restricted to homeowners with small loans compared to the value the property.
So, in a falling property market, it is important to reduce the loan quickly by overpaying your mortgage.
"Unfortunately, quoting Halifax's quarterly year-on-year figures to a lender will not cut much ice if the mortgage market is frozen and your home has actually fallen in value.".
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