Market strength presents unique borrowing opportunity for homeowners
It is predicted that house prices are set to soar over the next 6 years, presenting a great opportunity for many UK borrowers with regards to home loans.
Accordingly, the average home in the UK will be valued at an astonishing £310,000 by the year 2013. Analysts suggest that the market will increase by around 43% across the board, meaning that properties in the south could potentially be valued on average, at more than ½ million.
On the subject of a possible market decline, one of the UK’s leading housing authorities commented that using current industry data as a guide, it is unlikely anything other than growth can be expected in the foreseeable future. The government is also of a similar opinion, following on from the current PM’s recent announcement with regards to building more affordable housing, as a solution to the FTB crisis.
However, for those people lucky enough to already own their own homes, the market has created quite unique opportunities should consumers wish to obtain credit. Approximately 80% of homeowners have garnered a minimum of £70,000 in equity over the last 6 years, and as such are able to borrow significant amounts against their assets.
One of the countries leading home loan lenders has recently announced that the number of high value loan applications processed over the last 5 years, had increased by almost 60%. Commenting on the findings, the organisation suggested that many homeowners appear to be taking advantage of the strong financial position they present to lenders and are capitalising on that position.
