Figures show Britons chasing house prices higher

It would appear recent figures show British people chasing house prices higher and willingly going further into debt in the process, despite the rate hikes at the tail end of last year.

According to Moneyextra.com, the average property value being searched on their mortgage comparison tool during 2006 was £223,310 (a rise of 7.44%) compared to the overall average mortgage rate rising by 8.91%.

A Moneyextra.com spokesperson said that it would appear that people are prepared to take on greater debt in order to obtain their chosen property. Whilst the spokesperson would hope this month’s latest rise in the Bank of England’s base rate might slow buyers down a bit, he reckons as yet, it is too early to tell.

On average the price of properties being considered by first time buyers in 2006 rose by 8.44% to £179,766, with the average mortgage size being £140,885 (a rise of only 4.2%).

The average value of mortgages completed by AWD Moneyextra customers during December 2006 was £142,543 , while the average value of loans completed through the whole of 2006 was £141,950.89.

Their figures also reveal that Nationwide was THE most popular lender in 2006. It is worthwhile noting that this was the only mutual lender to make the top ten for the year.