Homeowner loan levels double
According to a leading UK building society the level of homeowner loans and mortgages being taken out in the UK has almost doubled in the space of a year.
This seems to reflect the benefits of rising property prices and equity levels for homeowners, as well as continuing demand for property purchases. The figures were released by Nationwide Building Society, and officials from the financial institute claim that they have seen the level of homeowners loans rise in the past year by nearly ninety three percent.
House prices in the UK have continued to soar, making affordability for potential property purchasers more difficult than it has been for the past fifteen years. However, somehow those that are intent on getting onto the property ladder are managing to find the means to do so in many cases, whether through borrowing money of family members for deposits, going for an interest only mortgage, taking out larger loans over longer periods, or opting for a 100% mortgage.
In order to make the process easier for buyers – and to ensure that the mortgage industry remains buoyant – mortgage providers in the UK have been offering increased borrowing power, longer repayment terms, and various other incentives to help make home buying easier. Those that already own homes and have mortgages have been raking advantage of rising equity levels by taking out loans secured against the equity in the property.
According to some experts the housing market is expected to remain strong in the first half of this year, but may start to cool off in the latter part of the year. Those looking to take out a mortgage or secured loan are advised to continue shopping around despite interest rate rises
, as there are still some impressive deals available on the market.
25th May 2007
How have Britons financed the billion of pounds spent on home improvements this year? Mostly through personal loans, although other forms of payments have been used as well.
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