Monday, July 30, 2007

Good Analysing There Fella

According to a report (covered by the BBC) from Fitch, the credit rating agency, the UK Housing Market "is over valued by 20%" which is hardly a surprise. What is slightly more of a surprise is that total mortgage lending rose by £9.6bn in June, up from £8.7bn in May, which would lead me to expect a rise interest rates again (which I did predict a few months back).

Weirdly though, and back to the original report, the UK is only the THIRD most vulnerable housing market to higher interest rates, behind both New Zealand and Denmark. Apparently the obsession with variable rates is the cause of this and if you want to avoid this problem, buy in Italy, Germany or that oasis of cheap property, Japan.

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