The Bank of England has voted to leave UK interest rates on hold at 5.25%. This is the first time since November 2021 that UK borrowing costs have stayed on hold.
The Bank's Monetary Policy Committee voted to leave borrowing costs unchanged after yesterday's surprise fall in inflation.
The average UK house price dropped by 4.6% in the year to August, falling at the fastest annual rate since 2009, according to the latest index from Halifax.
HSBC will launch mortgages lasting up to 40 years from today as it looks to attract prospective homebuyers crushed by the weight of rising interest rates. The bank will promote the new term on both residential and buy-to-let mortgages initially through brokers before issuing the loans directly to customers from September 13th.
Major lenders including NatWest, Nationwide and Coventry Building Society have cut interest rates on fixed mortgage deals as they bank on inflation dropping. All six of the largest lenders have slashed products in the past seven days - for a fourth week in a row.
Official inflation figures published this morning are expected to buoy hopes that households will feel some reprieve from the pace of eye-watering price rises.
Inflation fell to a 15-month low in June and is predicted to have dropped further. But the Bank of England is expected to keep increasing interest after it raised it to a fifteen year high of 5.25% earlier this month.
UK house prices edged down in July to an average of £285,044, marking a fourth consecutive monthly decline but with the market showing increased activity, according to data from Halifax.
The average house price fell 0.3% last month, broadly in line with a 0.2% drop reported last week by rival lender Nationwide.
The current figures suggest the housing market has so far proved resilient in the face of the sharpest rise in interest rates for 35 years.