Mortgage providers Nationwide and Halifax report price falls of 1-1.5%  last month.
Given the short-term weakness and distortions in the housing market, in addition to signs of more properties coming onto the market, it was perhaps unsurprising to see falls in some of the monthly house price indices in February,” he said.
UK lenders, including Lloyds and HSBC, have all made great claims at their results announcements about the amount of financing they are making available this year.

The mortgage is targeted at those who own atleast 50% of their home their home or to homemovers down sizing or moving sideways and remortgagers with a large amount equity. YBS says that four in ten borrowers own more than half their home and its big deposit mortgage joins a strong of good smaller deposit deals it has recently launched.

The up to 50% loan-to-value mortgage comes with a fee of £995 and early repayment charges apply until the deal period runs out.

A two-year fix at 3.09% is also avialable for those with a 40% deposit, with a £1,195 fee.

Ray Boulger at John Charcol, says: “After the normal seasonal lull in December John Charcol placed significantly more business in January and February, adding to the other evidence that the downturn in mortgage approvals and lending reported by the Bank of England and the Council of Mortgage Lenders for January will be reversed when the February figures are released. Both purchase and remortgage activity has increased this year, but remortgages have increased more.However, detailed analysis of the figures shows that all of the increase in remortgage activity over the last two months is due to a particularly sharp increase in buy-to-let remortgages.”
Boulger says mortgage rates have been steadily improving over the last few months, and in the residential market there are now even pretty good rates available up to 85% LTV - which makes remortgaging worthwhile for many more people - it is too early to be confident of an ongoing increase in remortgage activity.

Abbey for Intermediaries has also reduced the fee on its two-year tracker at 4.74% by £500 to £495.

The product is available at a maximum LTV of 85%.

Ricky Okey, managing director at Abbey for Intermediaries, says: “Our latest rate reductions mean that brokers can now offer their clients a more competitive range of four-year fixes, ideal for borrowers looking for the peace of mind provided by a longer term fix.
“Those borrowers wanting the flexibility of a tracker rate, meanwhile, can take advantage of the reduced fee available on our two-year tracker.”  �

“It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller,” she added.
Among the lenders to cut the interest rates across their mortgage ranges in recent weeks have been Lloyds, RBS, Cheltenham & Gloucester, Northern Rock and Alliance & Leicester.

RBS has raised its maximum advance for first time buyers from £150,000 to £300,000, which is good news for the market.
“The biggest reductions in interest rates have tended to be at the highest loan-to-value (LTV) levels, at 85% in particular,” said Ray Boulger of mortgage brokers John Charcol.
“It tells us partly that lenders have more money to lend,” he added.
House prices have risen in the UK over the past year, which means that lenders are again lending against appreciating assets and not ones that are going down in value.
“Increasingly in the last few weeks, some lenders have improved their offerings over 75% LTV, which is down to the consideration that it is more commercially viable - the risk is that much less,” said Mr Boulger.
Despite the recent trends, the proportion of new mortgage deals that require a deposit of at least 25% is still very high - 57% compared to 65% in March 2009.
Back in August 2007, just before on the onset of the credit crunch, only 16% of the deals on offer asked for such large down payments.

The MPC has also decided not to extend its quantitative easing programme beyond the £200bn it has already spent on buying up assets to boost the economy.
Minutes published by the Committee last month show that the Bank may look to spend more on quantitative easing in the future, but wants to judge how effective its purchases have been before it commits more money to the programme.

The reality is over the next four years, the £300 billion in support to lenders in the form of the Special Liquidity Scheme and Credit Guarantee Scheme needs to be repaid. It is hard to imagine that this process will not add to volatility in mortgage pricing for homeowners Martijn van der Heijden, head of mortgages at HSBC commented: “The next few years are going to be difficult to predict in terms of mortgage rates and some volatility for borrowers may well be unavoidable. The message for borrowers is that if you couldn’t afford an increase of up to 3% on your mortgage, you should seriously look to fix your payments.”
Over the first seven years of this decade mortgage borrowing grew by £180 billion more than retail deposits. If retail deposits cannot replace this funding gap and wholesale markets do not open up sufficiently, lenders will be left facing a choice of higher funding costs or the need to reduce lending.
Although mortgage standard variable rates may look attractive at the moment, they are one of the few pressure valves lenders can turn to when facing higher funding costs or the need to reduce lending. Both could be a real possibility for the next few years.

Valuations for buy-to-let investors rose buy 81%, and remortgaging levels doubled compared to January.
However, this was from a low start. With mortgages still difficult to obtain, remortgaging valuations were less than 30% their level in February 2008. Buy-to-let was 30% lower than 2008.
Ross Bowen, managing director of Connells Survey and Valuation, says: “Traditionally, the valuations market begins to see a boost in activity in January following the Christmas lull. January witnessed a hangover from re-instating the lower Stamp Duty threshold while the arctic weather conditions disrupted some buying activity. However, February saw househunters back on to the streets in force, with activity bouncing back as a result.”
He adds: “In January, we saw first-time buyer activity drop off slightly compared to December. Many first-timers had rushed to make their transactions before stamp duty holiday ended. In February, demand bounced back.
“Consumer confidence has been buoyed by nine months of rising house prices, and more and more people are considering buying a home. Homeowners have seen their properties reclaim much of the value lost during the downturn. Many who previously delayed see now as the right time to move properties”