London House Prices In Free Fall - What Now For the UK Mortgages & Bad Credit Mortgage Market?
What now for the mortgage and bad credit mortgage market with prices of homes in London and all over the UK falling faster in August than ever before?
Figures released by the online estate agents Rightmove state that new vendors i.e home sellers, are putting their homes on the market 2.3% lower than in the previous month of July!
This news comes on the back of monthly drops of 1.2% in July and 1.8% in June with the largest fall has been in London where home owners are putting up their houses for sale with reduced asking prices of 5.3% compared to a slight increase of 0.3% the month before.
This information would mean that UK asking prices are falling faster this August than ever before with London in particular offering on average the most substantial reduction of £21,000 in the one month!
However the good news for Londoners is that despite the large fall this month overall prices are only 3.8% lower in London than last year which compares favourably with the national figure of 4.8%.
The realignment that has occurred in the last few months comes as sellers who don’t have a pressing need to sell choose not to enter the market, leaving a higher number of forced sellers who must price their property far more aggressively.
The downward spiral in prices is likely to further disrupt the mortgage market as lenders will look to further cut the loan to value (LTV) they are wiling to lend at to protect their interests and mimimise risk. This is likely to have an even greater effect on the availability of sub prime or bad credit mortgages.
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