The low mortgage rates that are currently in place are of no use to many people who cannot get a loan.

According to Selwyn Lim, director of Mouseprice.com, the fact that mortgage rates and the cost of owning a home has fallen in the past two years is not something that will be of benefit to many prospective buyers.

He explained: "Mortgage availability is still an issue so while mortgage rates are not so high, it is useless if you cannot get a mortgage."

Mr Lim also stated that homeowners should take the recent figures from the Halifax House Price Index, which showed that house prices dropped by 0.6 per cent in June 2010 compared with the previous month, with "a pinch of salt".

He added that consumers should not place too much emphasis on the results of a single month but consider instead the trends for a full quarter as an indication of the activity in the property market.

Written by Paul Governor

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