Within the UK the property market has grown hugely over the last 5 years, in many areas people have seen their property values increase by over 100%, yes they have doubled in value! As a result of these increases many people have been releasing equity in their properties by taking out UK secured loans, which in turn has been holding up consumer sales and generally the economy. But its not all good news. The upshot is that many people have taken on large amounts of debt, often well beyond their capabilities. This combined with the rise in interest rates and the credit squeeze from the fall out in the sub-prime loan market, has resulted in monthly loan costs going beyond what people can afford. The result is that many people end up with the risk of losing their property.
If there is one message home owners need to understand it is “do not over extend” on your debt.
1 response so far ↓
payday advance // Sep 26, 2007 at 7:59 am
Yes you are right, Actully the thing you wrote that people got 100% reward on their investment is the main reason, why people are investing more in property and taking too much loan. And I am fully agree with your last line ,”If there is one message home owners need to understand it is “do not over extend” on your debt.”
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