Property Renovations Ely Ltd

According to figures released today by Nationwide the average price of a house fell from £150,501 to £147,746 in February, which represents a decline of 1.8% for the month and 17.6% over the last year.

Commenting on the figures Fionnuala Earley, Nationwide’s Chief Economist, said: “The price of a typical house fell by 1.8% in February, bringing the annual rate of change to -17.6% and the price of a typical house down to £147,746, from £179,358 this time last year. Sharp cuts in interest rates have helped affordability, but have not yet affected housing market confidence sufficiently to boost the levels of new transaction activity or slow the pace of house price falls. Early signs of increased interest in housing, as reported by the pick up in new buyer enquiries, have yet to filter into sales, but do suggest that falling prices and interest rates are raising curiosity now, which could flow through quickly once confidence returns.

Property Renovations Ely Ltd

The Bank of England has cut interest rates by a half point to 1%, their lowest level in over 300 years, as it tries to drag Britain out of recession.

The monetary policy committee voted to cut cost of borrowing again today to a new record low after hearing fresh evidence that the UK economy is in poor shape.

The decision will disappoint those in the City who had had hoped for a full percentage point cut.

It will be welcomed by borrowers and homeowners, coming just hours after the unexpected news that house prices rose by 1.9% in January. The latest data fom the Halifax put an end to months of falls and took many commentators by surprise.

If lenders pass the reduction on in full to borrowers, people with mortgages that track a point below base rate will find themselves paying no interest.

But the decision spells further gloom for savers as savings rates fall to virtually zero.

Property Renovations Ely Ltd

Some homeowners could see their monthly mortgage payments drop as low as zero this week.

The Bank of England is expected to cut interest rates to just 1 per cent on Thursday, bringing a windfall to those with interest-only tracker loans.

If it does, Cheltenham & Gloucester customers who took out a deal at 1.01 percentage points below the Bank’s base rate will be paying no interest at all.

For technical reasons, they will still have to make payments - 8p a month for a £100,000 loan - but the money will be refunded.

Those with repayment mortgages will need to pay around £333 a month on the same-sized loan.