The housing and
mortgage rate markets stabilised over the month of July, according to figures from Moneyextra's
mortgage comparisons report.
The data showed a slight rise in
business for UK
mortgage lenders with the average loan up rising by 0.96 per cent to £125,528. While this was the second consecutive monthly increase the figure still falls short of April's £126,812 peak.
July's figures showed a small increase for all residential mortgage sectors, with
first time buyers,
remortgagers and home movers all looking to borrow slightly more.
While mortgage values increased, average
property prices grew by only 0.39 per cent to £209,378.
The increased activity comes at a time when the Bank of England's Monetary Policy Committee has attempted to boost the property market by dropping the base rate of interest by 0.25 per cent.
The rate drop has already affected variable
mortgage rates and
remortgages rates and the Bank of England hopes that the move will tempt more first time
buyers into the market.
