Buyers 'should be cautious' despite booming mortgage market
Sep 22, 2006
House prices rose by 0.8 per cent in July, pushing the average cost of a house in Britain to £167,73, Nationwide Bank's monthly house price survey revealed.
Annual house price growth has been boosted to 5.9 per cent, reflecting a 'fairly buoyant' housing market, Nationwide said.
Mortgage lending figures for June seemed to reflect a similarly strong market, with mortgage lending at its highest ever figure at £32 billion, according to the Council of Mortgage Lenders (CML).
However, while consumer confidence is high, and both the economy and the housing market are in a 'strong position' according to the CML, buyers should not bite off more than they can chew.
Buyers should make sure that they take out a mortgage which enables them to meet monthly repayments, especially as many experts are predicting an interest rates rise in coming months.
"It is no use stretching yourself to the limit, coupled with an interest rate rise which will push up monthly repayments, which could put you in arrears or severe financial difficulties" said the CML
"So we would say that people should look really careful at their financial position and see what they can afford."
Taking out a fixed-rate mortgage can give consumers a financial security which they would not have with a Standard Variable Rate, making them less vulnerable to interest rate changes.
With Secured Loan UK .com, no matter whether you're Status or Non Status, being a Homeowner means we can get you a competitive rate that matches your credit history.
All you have to do is complete our Secured Loan Application Form and let us give you a FREE and NO obligation quote.
