House prices keep dropping.
House prices fell for an eighth straight month in June to stand more than 7 percent below the peak hit last year, a survey showed on Tuesday which is likely to fan fears the market is on the verge of a crash.
The Nationwide building society said prices fell 0.9 percent last month after a 2.5 percent drop in May which had been the sharpest fall since the series began in 1991.
Mortgage rates lifted by lenders
Borrowers coming up to remortgage have been urged to snap up a good deal while they still can, amid warnings that the cost of home loans is set to soar again.
Some of Britain’s biggest lenders, including Abbey and Nationwide, trimmed rates last week. However, that was before the Bank of England said on Thursday that inflation could jump to 3.7% by the end of the year, and indicated that it would be more cautious in cutting interest rates.
The inflation report sent rates in the wholesale markets soaring, suggesting rates on offer to homeowners would also head up, at least in the short term.