Sunday, March 9, 2008
House prices, going, going, gone
Laura Howard asks if house prices in general are going, going, gone as the bids dry up for bricks and mortar. With house values down and mortgage profits escaping through the back door, banks must recoup losses from somewhere and fears are mounting that this will be in the form of higher rates and stricter lending criteria. Ultimately, it may be the average homeowner – who has probably never been to an auction – who will be hit in the pocket when they try either to switch their mortgage deal or take out a new home loan when moving.