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18/05/2007
Homeowners in London are benefiting from phenomenal house price inflation, which has allowed them to find attractive secured loans.
The latest Asking Price Index report from Home.co.uk indicates that the average London property now has an asking price of £336,900.
Incredibly, house prices in the capital are rising strongly despite four interest rate increases, with demand for properties still exceptionally high.
"Fierce competition for London property naturally spills over into the south-east where house prices can actually look like relatively good value to priced out Londoners," the report notes.
Dough Shephard, business development director for Home.co.uk, admitted that house prices in London are now "going ballistic". While this represents an unfortunate situation for first-time buyers, existing homeowners will be delighted with the value that has been added to their property.
Secured loans are becoming increasingly popular in the UK and the property boom has certainly helped to accelerate this trend.
The advantage of a secured loan is that the lender is able to offer lower rates than are available for unsecured loans. This inevitably appeals to homeowners who are looking for a little more cash to fund home improvements or just to reduce monthly repayments.
Source: http://www.netloans.co.uk/articles/Secured-loans-appeal-to-London-homeowners-330.aspx |
