The current economic situation in the UK has had a huge impact on the mortgage market. Over the past 2 years the Council of Mortgage Lenders reports a fall in the mortgage market from £364 billion in 2007 to a forecast of £145 billion in 2009.
With falling house prices and discounted properties on the market due to homeowners facing repossession, there is plenty of opportunity for a property investor to make a profit even though the market is down.
The current figures from the Halifax show house prices have dropped 18% in the last 12 months. Recent reports showing house price increases in May have since been corrected when Land Registry figures came out showing in fact there was still a small drop in prices. Indicating we are not out of the red just yet.
Falling house prices and rising repossession rates due to debt and unemployment are going to bring about a lot of opportunities for property investors if they can get funds. Unemployment is expected to peak at 2.9million with the current rate of people employed at a little over 73%.
The current mortgage problems are also meaning people are not remortgaging and are often selling up and downsizing to prevent from having mortgage commitments at all.
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