Londoners enjoying increased borrowing abilities

Homeowners in London are enjoying the ability to borrow huge levels of money secured against their homes, and with the way that prices are continuing to climb in some areas experts state that the rising value of the property alone could soon pay off the loans.

London homeowners have seen their property prices shoot up massively over the last couple of years, and the average property prices in the capital city is around £337,000.

Upmarket areas in particular have seen the value of properties rise, and with many consumers using their secured loans to carry out home improvements it looks as though the value of their properties could go up even more.

In Mayfair and other trendy areas of London property prices have rise by almost a quarter of their full value, leaving the homeowners in the area sitting on a tidy nest egg when it comes to their equity levels, and giving them plenty of leverage when it comes to borrowing money on a secured basis.

Londoners are using their secured loans to finance a number of things, from carrying out home improvements and adding to the value of the property to consolidating their unsecured debts and making a huge savings on repayments each month.

However, on the downside those looking to buy properties in London – most notably first time buyers – are really struggling, as they are having to borrow huge sums of money in order to get their foot onto the property ladder in this area.

A recent report from the AA has indicated that many people are now turning to secured finance in order to fund home improvements, both in and out of the London area, making the most of their rising equity levels and improving the value of their property at the same time.

Tom Smith
14.06.07

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