UK Homeowners stop taking equity from their homes
Oct 6th, 2008 | By admin | Category: Lead Story, property news
The property market continues to feel the bite of the credit crunch and another indicator of this is the fact that people have stopped taking equity from their homes. In the past people used to take equity out to pay for a new kitchen or a big purchase now house prices are falling people are becoming more aware that they maybe losing money on the value of their homes.
Since the steady decline of the housing market the amount of equity taken out has also declined according to records people took out £5.2bn from their homes in the first half of this year compared to £10bn in the second quarter of 2007. This shows that now prices are decreasing people are far more cautious about withdrawing equity from their homes. This fear is being propelled by increased mortgage rates and the potential looming recession. This news sends a clear message that consumers are continuing to tighten belts and prepare for a tough road ahead.
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