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  • Will You Add? - What Will Happen to London House Prices?

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    >* To get on property ladder first time buyers have borrowed a high income multiple. Mortgage p
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    London House Prices have doubled in the past 6 years.

    Reasons why London House Prices may Fall?

    1. Interest rates have been increased 4 times in the past 9 months. This increases the cost of mortgage repayments, making it less attractive to buy. Although, the interest rate has only increased by 1% it is still quite a significant factor. This is because:

    * To get on property ladder first time buyers have borrowed a high income multiple. Mortgage p

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    may Fall?

    1. Interest rates have been increased 4 times in the past 9 months. This increases the cost of mortgage repayments, making it less attractive to buy. Although, the interest rate has only increased by 1% it is still quite a significant factor. This is because:

    * To get on property ladder first time buyers have borrowed a high income multiple. Mortgage p

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    creases the cost of mortgage repayments, making it less attractive to buy. Although, the interest rate has only increased by 1% it is still quite a significant factor. This is because:

    * To get on property ladder first time buyers have borrowed a high income multiple. Mortgage p

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    st rate has only increased by 1% it is still quite a significant factor. This is because:

    * To get on property ladder first time buyers have borrowed a high income multiple. Mortgage p

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    >* To get on property ladder first time buyers have borrowed a high income multiple. Mortgage payments are a high % of disposable income, therefore, a small rise in interest rates causes a big reduction in disposable income.

    * Increasing number have interest only mortgages. This means that they are more sensitive to interest rate changes.

    * Interest rates may rise further. This is because the bank is committed to reducing inflation closer to 2%

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