Brits “pessimistic” about house values

Many Britons are “pessimistic” about the likelihood of property prices rising again soon, a survey has suggested.

Research conducted by first direct has shown that 16 per cent of people do not expect house values to start increasing until 2012.

And several homeowners are waiting for the right moment to move up the property ladder, the firm noted, with some watching the market with an “eagle eye” to make a move before prices begin climbing.

In addition, first direct spokesperson Jimmy Kelly advised home loan holders that switching to an offset product can help with debt management in the current economic circumstances.

“Swapping to an offset mortgage could cut down the length of a £100,000, 25-year mortgage by almost three years and save £18,322 in interest payments,” he commented.

Meanwhile, the emergence of mortgages with higher loan-to-values has been described as good news for borrowers by Peter O’Donovan from Bestinvest.

By Jamie Price