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Britons chase house prices higher in 2006
January 15th, 2007
Mortgage seekers appear prepared to take on more debt.
Despite last year's two base rate rises, Britons appear committed to chasing house prices higher AND to going deeper into debt while doing so. For 2006 as a whole, the average value of property being searched against on Moneyextra.com's mortgage comparison tool rose by 7.44 per cent to £223,310, but the average mortgage amount being sought has risen even faster - going up by 8.91 per cent1.
Robin Amlôt of Moneyextra.com said, "The figures suggest mortgage borrowers are willing to take on greater debt to secure the property of their choice. This month's shock rise in the Bank of England's base rate may make buyers put the brakes on but it's too early to tell."
While first time buyers (FTBs) were stretched in 2006 by an 8.44 per cent rise in average FTB property prices to £179,766, as a market sector they weren't quite so happy to take on more debt. The average mortgage size being considered by FTBs rose just 4.2 per cent in 2006 to £140,885.
The average value of mortgages actually completed by AWD Moneyextra customers in December was £142,543.00. The average value of loans completed during 2006 overall was £141,950.89. The most popular mortgage lender in 2006 was Nationwide but the group was the only mutual lender to make the top ten for the year2.
For further information, please contact:
Robin Amlôt
Senior Editor, Moneyextra
Tel: 0870 191 5626
public.relations@moneyextra.com
NOTES TO EDITORS
Moneyextra.com's Compare and Buy Tool Searches December 2006
| Mortgages | FTB | Moving | Remortgage | All |
|---|---|---|---|---|
| Average Borrowed | £140,885.00 | £170,664.00 | £120,692.00 | £138,729.00 |
| Average LTV | 78.37% | 64.51% | 50.17% | 62.12% |
| Average Property Value | £179,766.00 | £264,535.00 | £240,579.00 | £223,310.00 |
| Average First Income | £40,090.00 | £48,518.00 | £44,003.00 | £44,289.00 |
| Average Second Income | £21,358.00 | £24,027.00 | £20,564.00 | £21,679.00 |
| % with dual incomes | 31.65% | 53.36% | 53.65% | 45.28% |
1Figures are based on the first 50,000 searches carried out on Moneyextra.com's Mortgage Comparison tool each month.
2 Moneyextra.com's top mortgage lenders
| December 2006 | Jan-Dec 2006 |
|---|---|
| 1. Woolwich | 1. Nationwide BS |
| 2. Nationwide BS | 2. Woolwich |
| 3. Alliance & Leicester | 3. Alliance & Leicester |
| 4. Bank of Scotland Mortgages | 4. Halifax |
| 5. Northern Rock | 5. First Active |
| 6. Cheltenham & Gloucester | 6. Northern Rock |
| 7. Mortgage Trust | 7. Cheltenham & Gloucester |
| 8. Coventry BS | 8. Bank of Scotland Mortgages |
| 9. Halifax | 9. Intelligent Finance |
| 10. Abbey | 10. Abbey |