Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:
“The report released by the Halifax this morning indicates that house price growth has risen, albeit modestly, in July on the previous month, highlighting that the UK property market continues to prove its resilience. A solid set of economic data, together with strong employment figures, underscores ongoing consumer confidence in bricks and mortar overall, although the topline figure from the Halifax this morning doesn’t allow for regional fragmentation, which is still prevalent.
An increase in property values isn’t just relevant to those currently in the market to move home. For those who are staying put and planning to remortgage, it can potentially represent more capital in their asset, meaning that some of the lower Loan To Value (LTV) products are available, thus providing the potential for borrowers to access some of the most competitively priced products. Despite the rise in Bank Rate announced last week by the Bank of England, many lenders haven’t changed their rates as they had priced in for the increase previously, which is good news for buyers and those remortgaging alike. As with growth in house prices, an interest rate increase is actually the sign of a robust economy, therefore coupled with today’s news, one might suggest that whilst the market isn’t fizzing away at top speed, it’s ticking over nicely through the summer months.”
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