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Spring buyers will seek cheap mortgages

Date: Wed, 01 Mar 2006

Spring buyers could be looking for extra cheap mortgages to encourage them to make property purchases.

New figures from Nationwide suggest that some homebuyers may decide to delay their house searches until after the summer months as first time buyers struggle to step on to the property ladder.

The Nationwide survey shows that the average house price fell by 0.2 per cent to reach £158,573 in February, compared to a 1.3 per cent increase in January. However, many buyers remain unsure about their long-term economic position and are delaying house buying until the more robust summer months, reports the Evening Standard.

Nationwide senior economist Greg Fuzesi said: "As we enter the all-important house buying season in March, the prospects for house prices and interest rate policy will become clearer."

"It will also show whether February's fall is just a pause before the spring rush or the first sign of weak market fundamentals weighing down on prices."

He added that any weakness in crucial economic factors could have a significant impact over the next three months and may potentially undermine any strong house price increases.


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