The housing market may be cooling off according to the latest information released by the country’s largest mortgage lender, Halifax.  The monthly analysis released for the month of April showed it to be the second month in a row with a decline in house prices.  This should offer some slowing therefore to the warnings from experts of a possible housing market crash if prices grew too fast and out of reach of buyers.

The average home in Britain dropped 0.2% in April and this followed the 1.2% decline reported for March.  The Halifax data still showed a gain in comparison to last year of 2.5%. 

There is an expectation of further stalling in the coming month as borrowers are faced with stricter approval rules due to the Mortgage Market Review (MMR).  The MMR requires borrowers to prove they can truly afford the mortgage they are seeking by sharing more detailed information about their savings and spending habits in relation to their net income.  The borrowers will also be put through a stress test to make sure they can afford the loan once interest rates begin to rise.

The Bank of England has insisted that once they begin to increase the standard base interest rate that it will raise slowly.  By the first quarter of next year there is expected to be the first of many increases with a possible 0.25% added on to the current 0.5% according to some experts.

Those looking to buy property or those looking to remortgage can, if the shop around diligently, find a cheap interest rate with very good incentives and on long terms.  However, it should be noted that the MMR can make the process more time consuming for the borrower as they gather required documents to share with the lender.  The process overall takes longer and while it is meant to be in the best interest of the borrower, the new guidelines will come as a surprise to many.  With patience, expectation of a longer process and shopping hard for the best deal, a borrower can still take advantage of the historically low interest rates on remortgages and mortgages on the market.