House prices have now fallen for ten months consecutively, dropping by 10.3 per cent since the beginning of this year.

The average property price now stands at £164,654 after having almost £20,000 wiped off its value. In the last year property values have dropped by 10.5 per cent, the first time there has been a double digit drop since 1990. There has also been a month on month increase in the rate at which homes are losing value. In June 0.9 per cent, July it was 1.5 per cent and in August it had jumped to 1.9 per cent.

However if you take a look at quarter statistics it shows the market has eased a little. August stood at 4.5 per cent, down a fraction from 4.6 per cent.

Interpreting the information the Bank of England has released on inflation and for growth would indicate more base rate cuts are on the way which would certainly ease mortgage payments worries of thousands of homeowners and should kick start the market again in terms of interest from buyers and mortgage lenders returning to the market.

Data supplied from estate agents has suggested buyers are returning to the market possibly interested in the result property prise falls and those opportunist buyers who try to negotiate big discounts.

Fixed rate mortgages are now in more demand, 40 per cent higher than last year were now more likely to take a fixed rate deal over a tracker mortgage as buyers are concerned about the unstable markets could see their mortgage repayments shoot up again and therefore prefer to limit their risk.

As the mortgage markets falling prices are predicted to stop falling in 2009 and then start a period of growth in 2010/2011, a two or three year fixed rate mortgage will be perfect for buyers looking to protect their repayments until the market are again at a competitive level were buyers are paying fair rates for a mortgage.

As more lenders are returning to the market and fixed rates are now at a similar level to this time last year it is worth searching the market to see what rates are available to you whether you are looking to get your first property or are looking to remortgage . You could save yourself hundreds of pounds a year or more depending on when you starting your current mortgage. Try a mortgage broker who can search the whole market to find the best deal for you.

There are many different predictions as to how long the recession will last and as we progress the predictions seem to point towards a longer recession (ok not technically yet). House prices are also predicted to fall further and not likely to recover until at least the second half of this year. I’ve heard predictions of a further 15% fall in house prices in 2009.

Although stability is returning to the mortgage market, mortgage lending has risen in November, there are still too many negative factors affecting the market from rising unemployment, widespread expectations of further house price drops and tightened credit conditions – despite the rising lending it is still only 10% of the 2007 level.

For first time buyers whether you want a Falkirk mortgage or Fulham mortgage my advice would be to save! While house prices continue to fall and mortgages are difficult to obtain my advice would be to work on saving for a deposit so when the market does improve, you are maximising your options to ensure you pay a good price but also get a mortgage at a good rate.

If you want to see what is available to you, a good mortgage broker can search the whole market to give you an idea of what to expect, it is even worth doing so you can compare this to a mortgage quote in six months time. Even if you do have a mortgage it is still worth using the services of a mortgage broker to ensure you are getting the best deal, especially if you are on a standard variable rate which can often be a higher rate than fixed rate mortgages.

About a week after the first Thursday of the month would be an ideal time to search as this is when the Bank of England’s Monetary Policy Committee meet to decide on whether to keep, cut or increase interest rates. In January its widely predicted interest rates will again be cut.

Halifax plc part of the HBOS Group, the UK’s largest provider of residential mortgages and saving accounts is advising that due to rising utility and council tax bills, the householders have been more restricted. In April, May and June the average raise in UK house prices was only about 2.5 per cent, which represents an important fall compared to the first quarter of year 2006.

The fall doesn’t predict a crash in UK house prices especially that the prices had risen in all parts of the UK, apart from Wales. Actually what Mr. Martin Ellis, Halifax chief economist explained is that the rise growth in the first half of 2006 had already exceeded the banks’ and many other economists’ expectations. The figures presented by Halifax show a fall in prices during June, but it seams that the annual price inflation is accelerating. The annual rate went up to more than 9 and a half per cent last month, compared to about 9 per cent the month before. The explanation given by the bank was that the market was weak a year ago, and the prices were largely flat during the first half of 2005.

There is no surprise that in the summer there is a noticeable slowing down on the market. The house price inflation in June was subdued at 0.3% reveals Nationwide, the UK’s fourth largest mortgage lender and second largest savings provider and the largest building society in the world.

Global Insight that provides the most comprehensive economic, financial, and political coverage of countries, regions, and industries available from any source and recognized as the most consistently accurate forecasting company in the world, has launched the opinion through chief UK economist, Howard Archer that the recent trend of house price inflation outstripping earnings was squeezing affordability and predicted that the prices will settle back with only small rises for an relatively long period.

The Bank of England comes with its figures too to emphasise the strong revival in the willingness of people to borrow against the rising value of their homes. In the first 3 months of 2006 the mortgage equity withdrawal was about £12 bn, almost double the amount of around £6 bn which was borrowed in the first three months of 2005. The difference is obvious and the slowdown in mortgage equity withdrawal almost hit the record levels settled in 2003.

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