With house prices in London "going ballistic", homeowners are adding value to their own house on a daily basis, making secured loans increasingly attractive for them.
While first home buyers, hungry to get on the first rung of the housing ladder struggle, burdened by high house prices and continuing growth of the market, London homeowners can take advantage of the situation as the high value of their homes gives them funds to free with a secure loan.
The average house price in London is now £336,900, according to the latest Asking Price Index report.
And prices keep on rising. Four interest rate hikes have slowed the market down, but house price inflation continues and demand for housing in London remains high.
Some areas of the capital, notably luxury areas such as Mayfair, have seen prices shoot up around 23 per cent in the past year.
With growth like this, a secured loan is a convenient way to borrow as it is possible that the rising value of the house itself could pay the loan off.
Meanwhile the loan could be used for holidays, cars or even improvements to the property which would see its value rise even further.
Source
http://www.thriftyscot.co.uk/Finance-News/052007/
london-prices-suit-secured-loans.html
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