House prices 'not a guarantee of better debt management'
House prices 'not a guarantee of better debt management'
- Monday, 6 April 2009Britons' communal ability to manage debts is not directly indicated by house prices, it has been noted.
Selwyn Lim, director of property market information provider Mouseprice, explains that figures must be adjusted if a level playing field is to be obtained.
Without doing so, the nation's debt management as a whole becomes subject to individual effects.
The expert says: "It could simply be the case that, one month, a lending institution gave more loans out for penthouses.
"And then, the next month, they gave out more loans for studio flats."
Such shifts - rather than a change in the nation's ability to manage debts - are suggested as playing a part in apparent recovery in house prices and mortgage applications.
For Britons whose financial situation is untenable in the short term, the inability to remortgage out of difficulty could be an immediate problem.
However, with the advice of debt management professionals it may be possible to manage other debts more effectively and continue to meet repayments on a mortgage which has gone up in cost.

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