Hastings International Reaction: Mortgage Repayment Outstrips New Loans

Hastings International is a London estate agent and they comment on Bank of England figures that show more money was paid off existing mortgages than was lent out to buy new homes during the last quarter in the UK. End Quote

(1888PressRelease) November 02, 2010 - Hastings International gave their reaction today to news that Bank of England figures show more money was paid off existing mortgages than was lent out to buy new homes during the last quarter. Historically lower interest rates were reportedly linked to homeowners to paying more towards their actual mortgage debt than towards the interest than was previously possible.

Whilst interest was reported at substantially lower rates, the UK housing market has of course seen the deposits required for a house purchase with a mortgage rise substantially higher than in previous times. The combination of these two factors appears to be allowing many home owners to own more of their home value through their deposit - and repay their remaining mortgage more rapidly. Overall, this is a combination tempting many buyers into the market:

"These somewhat unusual conditions mean many people are interested in buying - they are certainly seeing some exceptionally low rates. In very simple terms, you could say the house buyer's investment now represents keener value. The conditions are there to allow the mortgage to be paid over a shorter term in some cases".

The London property market has seen locally-focused adjustments reflecting the global economic challenges since 2007. Many investors have monitored these developments and are well aware that the London property market has not crashed like some other major European cities. In some areas, investors are keenly following steady growth despite some often negative predictions for the UK as a whole. This is certainly the case in the latest emerging 'property hotspots' as a result of the London 2012 'Olympics Effect'. As well as a much localised market approach, many investors are also seeing relatively lower returns on other traditional investment vehicles such as savings accounts.

"There is probably a sense in which some London property may be being held up as a strong investment in uncertain times, but it does all rely on having a high degree of localised knowledge. What is happening in one month, quarter or even within a year or years nationally is not always reflected in London property either on a local or indeed city-wide basis. We are indentifying some of the better opportunities in the local areas we work in - Rotherhithe, Shad Thames and Borough. But it has to be stressed we believe that that local expertise is going to be extremely important in the year ahead".

Rising deposits are undoubtedly one of a number of contributory factors behind those local areas avoiding uncontrolled price escalation in recent years. For investors, this can represent a key opportunity providing they gain expert help:

"The most important thing for anyone considering buying London property to do is to work with a local estate agent with a long reputation for good service. There is no simple substitute for professional research, knowledge of the local properties and experience over time. Their expert input can support you to maximise the potential by giving you access to the up and coming areas and identifying those local opportunities".

Visit http://www.hastingsinternational.com/ for more details and information.

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