Mortgage rates soar as UK house prices fall the mo

Aihucha News, September 7: Halifax, the UK's largest mortgage lender, said that UK house prices fell at the largest annual rate since 2009 (pictured) as soaring mortgage rates restricted homebuyers' affordability. In August alone, the average home value fell 1.9 per cent, the biggest monthly drop since November, Halifax said. This has left house prices 4.6% lower than when UK property values peaked a year ago. The findings echo those of rival National Home Mortgage Association, which last week showed home prices were down 5.3% from their peak a year ago, the biggest drop since 2009. Taken together, these reports suggest that the market has now roughly completed the 10% price drop that economists had predicted. "We do expect further downward pressure on property prices towards the end of this year and into next year, consistent with previous forecasts," Halifax director Kinnard said.