Recent figures have shown that house prices in the UK jumped up by 1.2% in the first week of 2010 alone. January saw an upswing in confidence from sellers appearing on the market and as a result, we’ve witnessed a significant increase in asking prices. Across England and Wales, this has translated to an increase in the average house price by almost half a percent. This may not seem to be a huge change but if the trend in increased seller confidence continues and the asking price for homes maintains this same rate of growth, the impact on the average house price in the UK will be significant.
In addition to this, estate agents also estimate that the number of homes currently on the market in the UK is at its lowest for a decade. This could be impacting on seller confidence as the short supply on the housing market will also be pushing up prices. There are, no-doubt, a host of contributing factors but what is clear is that in direct comparison with the same period last year, the average asking price of a British home has gone up by nearly 5%. This simply means that sellers are confident in asking for more money but that in itself can serve as an indicator of the wider economy. Rather than the economic doom and gloom of the credit crunch years, sellers are infecting the housing market and wider financial environment with a sense of growing optimism.
The number of homes for sale is far lower than two years ago. This can point to a population which felt at one time that they had to sell up to free equity from their property but now feel settled. This could be a result of the emergency rate of interest, which has allowed those people with a tracker mortgage to pay off far more of their outstanding debt. It could also be the result of the distinct shortage of on new-build properties on the market as builders and developers reigned in their activities during the difficult financial climate. For whatever reason though, prospective buyers have extremely limited choice in the most popular areas.
So, for homeowners who are facing debt problems, their biggest asset could well be their solution. There is a range of options open to homeowners looking to use the equity in their home to pay off their outstanding debt. It can be used as collateral for a debt consolidation loan; letting you secure your unsecured debts and could offer you a better rate of interest, as well as a possibly easier to service repayment plan. Although you should never commit to a debt consolidation loan that you cannot afford, if the debt becomes secured against your home it is at risk if you fail to keep to the agreed repayments, and you should also be aware that you could be paying off this debt over a longer period of time.
There is also the option to just sell up, down-size and free some funds to pay off your debt. Also, there is the option to remortgage your home. If you’re one of those with a tracker mortgage that’s reaped the benefits of the emergency interest rate, now could be a good opportunity to switch to a fixed rate and free up some equity to settle debts, always seek professional advice.
There are a lot of choices to be made and the very first one should be where you go for advice about the best course of action. This discussion shouldn’t be a difficult one though. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. They are on hand to offer free, impartial debt advice to anyone facing the threat of bankruptcy and repossession. The expert team of debt advisors have a lot of experience in this area and know that everyone’s financial circumstances are different. Therefore, they can advise you on the best solution to your specific debt problem.
Visit dev.harringtonbrooks.co.uk and use the fast, free debt wizard for a quick insight into the solutions that could suit you. Then, talk to one of the team and they’ll tailor a plan to free you from debt and make the most of your assets.