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High house price growth provides loan equity

A recent report has confirmed high UK house price increases compared to the rest of europe, making equity available for borrowers looking for secured loans.

Only Spain can beat the UK for house price growth over the past 5 years according to a report from HBOS. UK house prices have increased an amazing 90% over the past 5 years, which for many UK homeowners means a huge chunk of available equity should they wish to secure additional borrowing against their home. UK home owners may have use this equity to raise cash through remortgaging or to take second charge secured loans against their properties if that proves a better option. When borrowing larger amounts over longer periods, the secured route is often the cheapest loan option as the lender has the security of property values to back up the loan.

In addition to Spain, France has also shown high increases in property prices recently and looking at the past year French houses have increased 15%, just behind Belgium at 18%. Although Spain has the highest 5 year growth increase at 100%, Spanish prices are still far below UK levels with an average property price of £150,200 compared to £187,100 in the UK.

The UK average price is not the highest in Europe however, with the Netherlands beating the UK with £190,900 and Ireland the most expensive at £209,300.

The UK also beats Australia, Canada and the US for 5 year house price growth but US prices have actually dropped 1.3% over the past year. Perhaps an indicator of things to come for the UK. This could be the most opportune time for UK residents to take advantage of record equity levels when choosing a secured loan.

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