SCOTS house prices are slowing down - but are still rising at almost twice the UK average.

Sellers still stand to make another 10% in the coming year - just 2.5% less than last year's increase.

The dip is being blamed on the rising mortgage rate which slows the rise in house prices because fewer people can afford a new home.

Interest rate increases have hit mortgage payments and a rise in food costs has cut the amount of spending cash available, says a Bank of Scotland economic forecast.

It predicts that house prices will increase by 10% but sellers in Scotland will still pocket proportionately more than those elsewhere in the UK, which now has an average growth rate of just 6%.

Tim Crawford, the bank's group economist, said: "While house price growth was stronger than expected during early 2007, there are now more signs that the market is slowing. We expect this trend to continue."

But the north-south divide is set to widen. The average cost of a home down south could rise by £14,500 above Scottish prices.

Northern Ireland, however, is on the brink of a property boom. House prices there are expected to rocket by 23% by the end of the year, almost twice that predicted for Greater London.

And more buyers than ever before are signing up for fixed rate mortgages.

Almost 70% of new mortgages during the past 18 months were taken out on fixed terms - that's 30% more than the average take-up during the last 14 years.

But the Bank of Scotland estimated that someone who borrowed £114,000 two years ago at a fixed rate of 5.08% will see their monthly payments rise by as much as £65 if they switch to a two-year fixed mortgage of 6.4%.

Although the extra is still likely to be affordable for some. The bank says earnings have risen by 7% since 2005 so higher payments can still be met.

And house price rises will not deter people from saving. The amount now held in bank accounts is expected to increase by a whopping £70billion.

If the prediction comes true then the nation's savers will create a new record by the end of the year by banking more than £1trillion.