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House prices higher as mortgage lenders more competitive

Property prices are up by 3.5% according to Nationwide as mortgage lenders offer more competitive loans.

The price of the average home is £170,514 increasing 3.5% in the last year with greater market activity helped by cheaper mortgages from lenders.

Nationwide has said the government Help to Buy scheme was helping to reduce the cost of credit and increase mortgage availability.

There are more first time buyers in the market at 45% in the second quarter which is the highest since 2005. The Bank of England has said average interest rates on a mortgage have reduced to 3.17% the lowest since records began 2004.

Big six lenders dominate

The biggest six lenders account for more than 90% of the mortgage market compared to 77% this time last year according to the Council of Mortgage Lenders (CML). The top six lenders are as follows:
Top six lenders
Lloyds Banking Group
HSBC fourth
Competition in the market is intensifying forcing lenders to offer better mortgages as homeowners for re-mortgages and first time buyers shop around for the best deals for their needs.

For remortgage buyers at the end of your mortgage deal, avoid the lenders expensive variable rate and switch to a preferential rate to reduce your monthly repayment costs.

London market rising fast

Figures from the Land Registry show London and particularly luxury property in the capital has been driving house price rises in England and Wales.

In London the average house price rise was 6.3% for the year and up 2.1% for the month of July while parts of the north-east and north-west of England, Yorkshire and Wales experienced falling house prices.

The soaring house prices in London could mean first time buyers are priced out of the market making it difficult even with the help of Help to Buy scheme or Shared Ownership.

For home movers wanting to trade up when prices are rising, they may find their next property is more expensive which means they need a larger deposit or mortgage.

Help with the deposit for a new home can come from family members as the equity release buyers access cash using a lifetime mortgage and gift to a child or grandchild the extra deposit to buy their second home.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.

Learn more by using the equity release calculator, mortgage monthly cost calculator, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to repay an interest only mortgage, improve your quality of life or gift to a family member or friend.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%

The latest mortgage news

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24 Jun 2021

House prices at record levels with lack of property choice for buyers

Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.

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Prices for house sales are rising four times faster than flats

Strong demand for houses has driven price growth up 5.2% in the last year which is over four times more than the 1.1% growth for flats.

28 May 2021

Fixed rate mortgage deals fall to under 1pc as lenders compete for borrowers

Fixed rate mortgages are cut to 0.99% for borrowers with large deposits looking to remortgage as competition increases from lenders.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


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