Mortgage rates and house prices fall

The cheapest five-year fixed-rate mortgage has fallen below 4% for the first time since early October. Competition between lenders and lower interest rate forecasts have brought down the cost of borrowing, with HSBC launching a five-year fix at 3.99% for those remortgaging, down from 4.29% before. The reduction will save someone with a £200,000 mortgage £420 a year in repayments. Last week Lloyds and Virgin Money launched a 10-year fix below 4%. The typical UK property now costs £281,684, down by just £29 from £281,713 last month, according to figures published by Halifax. It follows larger falls of 1.3% in December and 2.4% in November. However, Halifax said steeper falls were to be expected. The Times (£)and The Times (£)