THE rate at which house prices are falling in Edinburgh is accelerating, with values plunging 11.4% over the past year to the end of October, according to the Edinburgh Solicitors Property Centre.
This compares with annual house price dives of 7% in September.
Sales were 58% lower than a year ago, and buyers are driving a hard bargain. Three-quarters of properties for sale at a fixed price went for less than the asking price. The average
property value in the capital is down to £192,225.
This comes as no surprise given a go-slow by mortgage lenders, with few bargain deals launched last week. The best tracker loan continues to be HSBC's 0.99% over base rate loan, although this is only available to remortgage borrowers with a 40% deposit.
Otherwise, Lloyds TSB Scotland and its sister C&G are offering the cheapest tracker deals, although even here you require a 25% deposit. You can track base at a 1.79% margin with a £2,094 fee. Alternatively, you can pay base rate plus 1.39%, but the fee rises to 2.5% of the advance.
If you want a fixed rate, both the Abbey and Alliance & Leicester have two-year fixes at 4.49%, although you require a 40% deposit. The Abbey loan is for remortgages only and has a £1,499 fee, but comes with a free valuation and legal fees. The Alliance & Leicester is for purchases as well, but charges a fee of 1% of the advance.
New savings dealsIT IS similarly quiet on the savings front, with few new savings accounts launched.
Clydesdale Bank is currently offering one of the best rates on fixed bonds, paying 6.1% fixed for two years, or 6% fixed for one. This compares with an average paid by fixed bonds of 4.73%.
Elsewhere, Halifax is paying 6% for a year. Skipton Building Society has launched a new issue of its Guaranteed Double Asset Bond paying 7% fixed for one year and 100% of positive growth in the FTSE 100 over a five and a half year term.
Meanwhile, M&S has reduced the rate on its variable cash Isa products from 4.50% to 3% in line with last week's Bank of England base rate cut. The variable cash Isa interest rate is guaranteed to at least match the base rate until January 1, 2010.
Credit costs riseCREDIT cards are becoming an increasingly pricey way to borrow money despite the recent dramatic base rate cuts, according to moneyfacts.co.uk.
Since August, 16 providers have increased their purchase rates including Royal Bank of Scotland, Abbey and NatWest.
Twelve cards have upped the cost of withdrawing cash, including Abbey Credit Card and Nationwide Gold and classic Visa cards, which have increased rates by 5% to 27.9%.
Eleven cards have hiked their balance transfer fees and seven cards have increased cash advance fees.
On top of this, some credit card providers have cut their 0% balance transfer deal terms.
The full article contains 512 words and appears in Scotland On Sunday newspaper.
