Mortgage Rates Reduction From UK Lenders

It’s been a busy week for housing market statistics.

Following over a year of rising mortgage rates, there may be light at the end of the tunnel for borrowers.

On 26 July 2023, Barclays, HSBC and Nationwide – all top ten lenders in the UK housing market – announced mortgage rate reductions in some of their mortgage products. Smaller lenders Skipton, the Coop and Pepper Money also announced reductions all to the relief of prospective borrowers.

These mortgage rate reductions follow statistics from the Bank of England showing monthly inflation dropping from 8.7% to 7.9% in June. The inflationary trend is downwards. If inflation continues to fall, interest rates will follow suit. Consquently, this will lead to a further lowering of borrowing costs for homeowners.

May 2023 Statistics

The Registers of Scotland issued their May 2023 statistics last week. This showed the cheapest and most expensive places to live in Scotland.  East Renfrewshire leads the way as the most expensive place to live, with a median price of £300,000. This is closely followed by the City of Edinburgh at £275,000. The City of Glasgow comes in at £173,750. Inverclyde is the cheapest area to live in Scotland, with a median price of £95,000.

Average property prices in some Scottish neighbourhoods are a staggering.

Mortgage rates reduction

Additionally, the figures revealed average house prices for more than 1,000 smaller neighbourhoods, where differences were even more pronounced. The neighbourhoods, officially known as intermediate zones, each contain between 2,500 and 6,000 households. 

At a neighbourhood level, the three most exclusive areas in Scotland are all found in the capital. Murrayfield and Ravelston was the most expensive area to buy, with the average property costing £657,000. This is 16 times greater than Greenock Upper Central in Inverclyde, with an average property price of £40,000. 

Here, we reveal the cheapest council areas to move to, based on the median house price in 2022. The figures do not adjust for the different types of housing sold in different areas. For instance, averages can be affected by new developments on sale in an area that year.

Are you looking to take advantage of mortgage rate reductions and move house soon? At Oracle Law, we offer expert conveyancing services, specialising in the Scottish property market. Our solicitors are with you every step of the way. Get in touch with us to learn more!

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