Halifax witness a dip in house prices

08/10/2007

During the start of October, Halifax witnessed that house prices fell during September period for the first time in nine months.

Anybody who purchased their dwellings over a year ago should be, on average, greater off today compared to 1 year ago.

Nevertheless, looking at the site, first-time buyers, which completed a 100 per cent mortgage, have a reason to be apprehensive. Figures prove that around one in 20 first time buyers take on this type of mortgage deal to cover the full value of their home.

Head of personal finance, David Kuo commented: "Any borrowers on a 100 per cent mortgage must need to be aware that stagnant house prices may keep them shackled to their uncompetitive lender and prisoners in their own home until house prices rise again.

"They should also overpay their mortgage as often as they can afford. This will ensure that they are regularly chipping away at their debt.

Mr Kuo added, 100% mortgage deals are supposed to help first time buyers get on to the property ladder, “but in a market where house prices stagnate or fall, what providers give with one hand may be taken back with the other when the mortgage deal ends."

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