Has Postcode Lottery Cost You A Wonderful Mortgage?
Property in Europe (Photo credit: Images_of_Money)
If you haven’t noticed yet, borrowers are facing a postcode lottery anytime they want to find a mortgage. The reason is because lenders today are consulting the local data depicting the cost of houses before an application has been rubber-stamped. After a number of months marked contrasts in the changes of value in the area of the property has been deciphered, with the best prices being in areas that are almost stagnating. House prices have been rising by about four percent on average with others seeing over 14 percent increase since 2009; others are reporting a drop in property costs.
Varied Percentile Price Changes
Across the different regions, the division has also grown with a breakdown of recent figures finding out that house prices in the southeast and London has been rising by around 13 percent in duration of one year. In a place such as Northern Ireland, the prices have been dropping by 5.2 percent. Essentially, it calls for a lot of research and checking out the postcode of the region you intend to invest across the UK to secure the right mortgage. The same is also very clear for those who intend to sell their properties and have to also pay attention to the postcode and all the information breaking down the cost of real estate to have a better idea about what is happening.
Postcode And House Price
Lots of prices across the UK are facing a tight period, with some facing lower costs for those who want to sell their properties yet others within the same region are selling very well. Postcodes are what people are using to find a house and efforts such as changing the name of a place and giving it a historical title might not work very well. With changes in the name there is an expectation the name will attract tourists, visitors, investors and house buyers raising the price of property. Lots of places are the best kept secret many in the UK have no clue about since properties are very affordable as compared to other cities and towns.
Varying House Price Averages
House prices vary so much across the UK. Once you have left a specific town council or region the price double, especially as you enter the Moorlands. In other places such as Nantwich and Ashbourne, the average house price also varies a lot. Most of these areas have the average property price more costly and above the national average. Those living in a number of major cities realize the cost of properties is as high as expected.
For example, the postcode effect is clearly visible in two different places, Cheadle and Ashbourne. They are only separated by a 15 mile road yet those properties in Ashbourne are very expensive. Perhaps it is because of the lovely nature of Ashbourne town that one can commute all the way to Derby as well as being the best entry point to the Peak district. The cost of properties has always been over the national average, a trend that’s not changing. In short, before you buy a property, you might want to look at the postcode once more.
Author Bio
Michael is a travel blogger who lives in London and like to travel new places around the world. He occasionally uses postcode finder UK to get information on certain post codes and area information that he is not aware of.
Category: Family Finances, Mortgage
