Peak in housing market gives homeowners a loan boost

Posted 2007-11-23

The increase of current property prices in Britain has given many homeowners an unexpected advantage by also boosting the amount of money they could obtain from loans. 

For those considering a secured home loan, it may be a feasible move to check with local housing prices to see how much property values may have increased. This would give homeowners a fair idea of how much they might expect for their own property’s price to rise.

Experts like Howard Archer, chief UK and European economist at Global Insight notes that “the housing market has been healthy so far this year” and “the economy has seen growth close to 3% over the past couple of years.”

While the rise in Real Estate prices has caused homeowner loans to be in greater amounts than before, the situation is not expected to last much longer. 

“In economic terms, now may well be as good as it gets for some time,” Mr. Archer said, while warning that with the release of the September Incomes Data Services pay survey reporting a decrease in household income, that the chance of the housing market making “a sharp correction” in 2008 is possible.

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