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Saturday 27th of June 2009
April 17, 2009

Britons stack up £20.2bn to invest in the housing market


by Gill Montia
Britons stack up £20.2bn to invest in the housing market

First Direct has published research suggesting that around four million Britons are sitting on cash they want to invest in the housing market, when the time is right.

According to the mortgage lender, homeowners in the UK are holding onto an estimated £20.2 billion that could revitalise the market once prices have bottomed out.

However, 12% of respondents to the lender’s survey said they doubted they would be able to buy the right property, even at current prices, with Londoners prepared to wait the longest to grapple with the market, compared to other regions.

First Direct spokesman, Jimmy Kelly, reminds existing homeowners that it is worth investigating an offset mortgage, which can reduce interest payable on a home loan by offsetting a savings balance against the debt.

Meanwhile, 15% of those questioned thought the market could recover by the end of 2009 although a similar proportion were not expecting price rises before 2012.

Yesterday, the Council of Mortgage Lenders reported that UK homeowners still have around £2.1 trillion of unmortgaged housing equity.

The body also suggested that those in negative equity could recover their positions more quickly than in the early 1990s because low interest rates allow for overpayments on mortgages and increase the capacity to save.

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