Secured Loans, Mortgages And Remortgages Need Property Prices To Rise
Secured Loans, Mortgages And Remortgages Need Property Prices To Rise
Now, almost a year since the official end of the recession, which lead to hope of an economic recovery, the U.K. at least is now sadly disappointed as regards the fate of the property market, and the homeowowner loans of secured loans, mortgages and remortgages that depend on property for their very survival..During the recession, many people were afraid to even consider taking out either a first or subsequent mortgage, as they were unsure of their employment stability for example .Many people had their earnings reduced. Others saw their household income almost halved due to one member of the family being made redundant.When people are unwilling or unable to apply for mortgages, as the case may be, it only adds further to the declining fate of the housing market.This time last year people began to feel that the worse of the economic depression was almost over, and that the property market wouuld return to it's pre credit crisis position, that house prices would increase, people would feel confident to apply for mortgages and that the buying and selling of property would be buoyant once more.New homes sold twice as much before the credit crunch. This is bad news for those in the building trade who lost jobs in thelr many thousands who believed that by now they would be fully employed again.This is not merely bad news for the property market, but also for the fate of mortgages, remortgages and secured loans which need a vibrant property market to enable people to have sufficient equity to apply for these loans.Property prices in general are still mainly under the level that they were before the recession which means that since about 2006 until now, almost five years later, that house prices have not risen at all ,and in many cases have fallen.Before this, property normally doubled in value every seven years leading to a very lively mortgage, remortgage and secued loan industry.Now the announcement that property prices ar not increasing, coupled with the new house industry selling half the number of homes that they used to, it seems that the awful depressing low volume of applications for mortgages, secured loans and remortgages will unfortunately be with us for some time yet.