One of the biggest mortgage providers in the UK, the Halifax, has announced more interest rate reductions on several of its home loan products.
The average mortgage rate reduction made by the Halifax is 0.25 percent, with most of its main tracker and fixed rate products enjoying this cut. Potential customers should be aware that they need to put down a deposit of at least 25 percent in order to receive this lower rate.
A Halifax spokesman explained that they were passing on recent reductions in the cost of borrowing that the banks charge each other, feeling it is in the interest of the market to offer the very best possible rate whenever possible.
In the current property situation it appears that the majority of homeowners improving their properties are doing so to increase its value according to the Halifax.
The Halifax survey found that around 28 percent of people are planning home improvements this year, with the primary objective being add value. Of these people around half of them are expecting to add in the region of GBP5,000 to what the property is worth, with over 10 percent aiming for between GBP10,000 and GBP25,000.
By far the most popular improvement is redecorating, followed by garden improvements and adding new furnishings. A Halifax spokesman said that home improvements can add value to a home, although expectations of higher property values should be balanced against a market where the buyer is stronger right now, so prices can be variable.
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The Nationwide Building Society house price index showed a fall in property prices of 2.5 percent in May, making them almost 4.5 percent lower than this time last year.
Despite the falling numbers, when compared with two years ago house prices are still higher now than they were then. This reflects the dramatic price rises the country has experienced and may make existing property owners feel a little better since they can see that the value of their home is still very strong.
A Nationwide Building Society spokeswoman supported this view, feeling that the price reductions were of limited concern to home owners in the short term. As she pointed out it is only those who bought at the very peak of the prices who may feel a little concerned at the moment, though even then property in the medium to long term has always proved to be a good investment.
