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Halifax warns customers who have taken out a mortgage with a bank

Halifax warns customers who have taken out a mortgage with a bank
Halifax warns customers who have taken out a mortgage with a bank

Halifax has warned mortgage customers after UK house prices remained “substandard” for the third month in a row. The average sale price was £288,455 in June, but recent mortgage rate cuts offer hope for the market, Halifax, a top UK bank, said.

The average house price hit £288,455 in June, Halifax reported, down just 0.2 per cent from the £288,931 recorded in Monday. Year-on-year house price growth remained unchanged at 1.6 per cent, the banking giant added.

Amanda Bryden, head of mortgages at Halifax, said: “This continued stability in house prices – up just 0.4% so far this year – reflects a market that remains subdued, although overall activity is recovering.

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“For now, it is the shortage of available properties, rather than buyer demand, that continues to drive higher prices.” Mark Harris, CEO of mortgage broker SPF Private Clients, said: “With the top five lenders – Barclays, HSBC, Santander, Halifax and NatWest – cutting their mortgage rates this week, lenders are left fighting for business as they ramp up summer sales.”

He added: “Those lenders who have not yet repriced are likely to follow suit, as long as servicing levels allow, which is welcome news for hard-working borrowers.” Bryden said: “While the housing market is delicately balanced in the near term and sensitive to the pace of change in the base rate, based on our current expectations, house prices are likely to rise modestly for the remainder of this year and into 2025.”

Jeremy Leaf, a north London estate agent and former chairman of the Royal Institution of Chartered Surveyors, said: “The election certainly contributed to the nervousness in the housing market, but the slower than expected fall in mortgage rates weighed more heavily.

“We are hearing from our offices and on the ground that most buyers and sellers are postponing their moves, so we expect the resilient recovery in activity to continue.” He added: “Looking ahead, the increase in listings means prices will remain stable and the arrival of a new government will provide more certainty.”