ease in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell w

While the UK housing market continues to move ahead, despite the outlook for increased interest rates in the short to medium term, there was an increase in the number of approved home loans in October. After a couple of months when the market seemed to be losing steam, the increase in October is both surprising and a little disturbing.

Figures released from the lending associations of the UK show that there were 74,997 mortgages approved in October, up from a figure of 72,155 in September, at the same time there were 73,888 remortgages approved, which was an increase of some six percent on the previous month.

While these figures in isolation are not terribly worrying, they do hide a defiance in the property market as rising interest do not yet seem to have kicked in. It is also of concern that some UK lenders are approving mortgages on five times salary, up significantly from the historical trend of three times salary. The concern is that the housing market will at some point grind to a halt, with many of these new home loans having been approved at higher interest rates. The fact that the average approved housing loan rose again to some ?144,200 indicates the buoyant attitude of house buyers, and more worrying, the willingness to pay higher prices.

As interest rates continue to tick higher (with money markets indicating a rise to at least 5.25% in the near future) this puts pressure on consumer spending, which in turn puts pressure on the employment market. If the pressure on the employment market were to result in job loses, then this would impact severely on the ability of many to cover their mortgage payments.

While house prices are still showing growth month on month, with the annual increase an average of 12.4% per annum since August 2004, there are signs that the rate of growth may be slowing. Against an increase in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell wh

a figure of 72,155 in September, at the same time there were 73,888 remortgages approved, which was an increase of some six percent on the previous month.

While these figures in isolation are not terribly worrying, they do hide a defiance in the property market as rising interest do not yet seem to have kicked in. It is also of concern that some UK lenders are approving mortgages on five times salary, up significantly from the historical trend of three times salary. The concern is that the housing market will at some point grind to a halt, with many of these new home loans having been approved at higher interest rates. The fact that the average approved housing loan rose again to some ?144,200 indicates the buoyant attitude of house buyers, and more worrying, the willingness to pay higher prices.

As interest rates continue to tick higher (with money markets indicating a rise to at least 5.25% in the near future) this puts pressure on consumer spending, which in turn puts pressure on the employment market. If the pressure on the employment market were to result in job loses, then this would impact severely on the ability of many to cover their mortgage payments.

While house prices are still showing growth month on month, with the annual increase an average of 12.4% per annum since August 2004, there are signs that the rate of growth may be slowing. Against an increase in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell w

salary. The concern is that the housing market will at some point grind to a halt, with many of these new home loans having been approved at higher interest rates. The fact that the average approved housing loan rose again to some ?144,200 indicates the buoyant attitude of house buyers, and more worrying, the willingness to pay higher prices.

As interest rates continue to tick higher (with money markets indicating a rise to at least 5.25% in the near future) this puts pressure on consumer spending, which in turn puts pressure on the employment market. If the pressure on the employment market were to result in job loses, then this would impact severely on the ability of many to cover their mortgage payments.

While house prices are still showing growth month on month, with the annual increase an average of 12.4% per annum since August 2004, there are signs that the rate of growth may be slowing. Against an increase in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell w

e) this puts pressure on consumer spending, which in turn puts pressure on the employment market. If the pressure on the employment market were to result in job loses, then this would impact severely on the ability of many to cover their mortgage payments.

While house prices are still showing growth month on month, with the annual increase an average of 12.4% per annum since August 2004, there are signs that the rate of growth may be slowing. Against an increase in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell w

ease in house prices, there were also a record 27,644 personal bankruptcies in the third quarter of 2006, which may well give a more balanced indication of the state of the market. Many people seem willing to take on large amounts of debt, with very little cushion between monthly payments and income. In this scenario, a rise of just 1/2% in UK base rates will result in ever more pressure on the payment cushion.

The signs are there, but only time will tell when buyers decide that enough is enough. As we see ever more attractive home loans offers on the high street, many people will feel that the risk is worthwhile. Time will tell.