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Latest News » Property Boom 2007
It looks as though Britain ’s house prices are set to continue upwards in the new year.
The predicted percentage of increase is at about 6%. This is good news for home owners, but not so good for first time buyers. For home owners the increase will mean positive equity and a chance to remortgage and save a lot of money.
If you have owned you property for more than 5 years now, and you used a mortgage to purchase it, then now might be a good time to have the property valued. If it has increased in value by a significant amount, it might be worth considering a remortgage.
This 6% figure is merely a show of confidence brought on by the new year, where the reality last year was a fear of inaccurate property valuations.
House prices for 2006 have reached a record high, which unfortunately for most (i.e. first time buyers) means that the average house price far outweighs current wage increases, especially compared to the last property peak of 1989.
However house prices increasing more than wages should not come as a surprise. Whereas the average wage increase per year is at around 4% - 5%, house prices have been increasing at double that amount at an average of just over 10%.
Although all these facts and figures might seem a little daunting to the first time buyer, try not to worry too much. As long as you do your research you’ll be able to find the right mortgage for you and your first home. Please read through our First Time Buyer Mortgage page for more information. There are still plenty of houses which are affordable, you just need to know where to look.
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