Homeowners 'should pay off mortgages soon'

Posted: 06 Dec 2011 12:35:15 GMT

An expert has urged homeowners to pay off their mortgages as soon as they can as house prices continue to fall.

Property owners have been advised to pay off their mortgages as soon as they can, as UK house prices continue to fall during the current economic climate.

Paul Holmes, chief executive officer of Firstrung, predicted values would reduce "spectacularly" in the coming months, with an overall drop of 33 per cent in the next three years.

The expert went on to claim he does not see any good news for those looking for a rise in house prices, although he added first-time buyers could use this as an opportunity to step onto the property ladder.

He went on to suggest a potential economic downturn could spell further trouble for the ailing housing market, while warning people not to stretch their finances in the coming months.

"If the number of jobs in the economy contracts [and] the amount of available credit contracts, it is going to have a devastating effect on house prices," he said.

This comes after research carried out by the Council of Mortgage Lenders highlighted an eight per cent increase in lending to prospective homeowners during the third quarter of 2011. 

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