House prices rose for the third consecutive month according to Halifax, which will be welcome news to those struggling to remortgage because they don't have enough equity in their homes. It may also boost confidence and stimulate a bit more activity in the market - good news for those trying to sell.
However, whether the recent upturn in the housing market proves sustainable will depend largely on the availability of mortgages, which as we know have been in short supply. On the plus side, there's been some positive movements in this arena too.
Signs of positive movement
Last week for example, Woolwich reduced rates on its lifetime tracker mortgage down to those more akin with 60% loan-to-value deals - though its deal is available to 70% of the property value. For a £999 fee, borrowers will now pay 2.29% opposed to the previous 3.24%.
Abbey also reduced rates on some of its mortgage deals and HSBC nodded towards an improvement in the market with its promise to make an additional half a billion pounds of mortgage funding available to borrowers with deposits of just 10%. To put this in context, this means the bank's overall 90% lending in 2009 will be double that of 2007.
And to top it off, the Bank of England called another 'no change' on current interest rates of 0.5% this month. So monthly mortgage payments - for the time being at least - are set to stay low.
Putting it into practice
But while this is all good news in theory, the reality may not be so sweet. HSBC's 90% loan-to-value funding, for example, may be 'available' to struggling first-time buyers but actually parting with the cash could prove a different story.
Armed only with a 10% deposit, applicants are still likely to need an exemplary credit rating and stable employment - two things that have unsurprisingly been in short supply during the recession.
And, as well as a continued lack of credit, first-timers are also facing the more traditional problem of rising house prices again. In other words, even if the credit drought is showing signs of abating, 10% of a property value will be more difficult to save for.
First-timer support
At least signs of a return to mortgage market innovation - albeit within conservative confines - could brighten first-timers' prospects. Last week, Abbey launched its HomeBuyer Plus range of mortgages which do not charge legal or valuation fees. Abbey claims the perk could save first-timers up to £1,650 in upfront costs.
This could be useful for those who miss out on the government's potential £1,750 stamp duty saving, which expires at the end of this year. But of course, it's always important to shop around for the best deal for your overall circumstances, rather than fix in on the selling point of any mortgage offer.
Homeowners back on top
Clearly, news of rising house prices will be music to the ears of existing homeowners. This is partly because the house price falls of 20% witnessed during the crash had prevented many from remortgaging to the best deals - or even any other deal at all.
At the same time, lenders have been demanding larger deposits in the face of falling prices, with many of the leading mortgage deals only available for loans up to 60% of the property's value.
To make matters worse, so-called desktop valuations used for the purposes of remortgaging or a further advance (where you borrow more against the house without switching lenders) are particularly conservative. This is because the valuation tends to be based on what the home could fetch on a forced sale, rather than what it would sell for on the open market - a price tag which is considerably less.
But now rising house prices and, in turn, shrinking loan-to-values could shed some new light on this problem, giving existing homeowners renewed access to the best deals. So what's out there?
New deals that may be in reach
Top of the tables for those with a 40% deposit is HSBC's lifetime tracker mortgage, priced at 2.74%. The deal comes with a £999 arrangement fee, imposes no early repayment charges and offers with free legal fees.
Homeowners wanting to freeze the rate they pay might look at First Direct's two-year fix priced at 3.49%. Again, you will need to demonstrate 40% equity in your home as well as pay a slightly larger £1,298 arrangement fee.
Anyone armed with the same equity but looking to fix in for the longer-term should look HSBC's five-year option. The deal is payable at 4.95% with a £999 fee and legal work is free.
If you can still only muster up 25% equity in the face of the house price recovery, try the two-year tracker from ING Direct. The deal is payable at 2.79% with an arrangement fee that's also on the light side at £795.
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