Things don't look to rosey for some homeowners in Bucks, and elsewhere for that matter, with high loan-to-value mortgages. Many are said to have bought their homes on a concessionary rate possibly as low as 3% and when it runs out they may not be eligible for another one and may be forced to pay the full 6.75% standard variable rate.

This could mean that people with a £190,000 mortgage at the 3% rate and paying £475 interest per month will face an increase to over £1000.

Though house sales are still buoyant there is positive evidence that prices are falling. The property website, Rightmove, indicates that there has been a 2% drop in as little as five weeks which means around £4,000 less on the price of an average home. The largest fall of 6.8% was recorded in Wales with Greater London dropping by 4.3% but only 2.8% in the East Midlands.

Also, the buy-to-let bubble may have burst with a noticeable increase in the numbers of landlords selling up. The Royal Institution of Chartered Surveyors says that 10% of landlords have put their properties on the market since the end of July, compared with 7.5% last October.

These and other figures give rise to the fear that a housing crash could be on the cards though many pundits prefer to see it as a "rapid slow down in prices."

(c)Andrew Leech
andy@buckshouse1.demon.co.uk
Bucks House Publishing