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More People Looking For Mortgage Loans As Housing Prices Decline

by Jim ONeil on March 2, 2011

in Personal Finance Tips

Housing prices in the UK fell through last year and are expected to decline further during 2011. This is good news for anyone interested in purchasing a property. The problem is that due to the financial crisis, many do not have the extra funds. Others who do are finding it difficult to get mortgage loan approval due to restrictive lending practices. But, that does not mean they are not trying.

In October 2010, there were two million online searches for retail bank-related services by UK consumers. Of these, 61 percent pertained to mortgages and loans. Technology firm and search marketing expert Greenlight released its most recent quarterly research, revealing that the keyword “loan” was the most popular retail banking product search, representing 33 percent of searches conducted.

Industry data was used by Greenlight to classify the most popular 750 search terms used by consumers when looking for retail banking products. With a share of 28 percent, “mortgages” came in a close second in the keyword popularity contest. Numbers three and four on the list were “bank accounts” and “credit cards”, with 24 and 16 percent shares, respectively.

“Mortgage calculator” was used 135,000 times during October, accounting for 24 percent of mortgage searches and seven percent of general retail banking searches. January 2010 was the month this term

peaked in use during searches. Greenlight believes its first quarter 2011 data will reflect a similar increase, due to consumers doing a New Year’s reassessment of finances.

In total, there were 666,000 searches related to loans. Eleven percent of the time, people searched using the keyword “loans” and they used “pay day loans” nine percent of the time. Other loan-related search terms included “student loans,” “car loans,” “personal loans,” and “loans for people with bad credit.” It is clear that consumers are continuing to search for ways to finance everything, including the new home they have been eyeing.

pors stone

The housing industry reaches the worse it’s been for any very long time,I do not think anybody would accept 130,000 to have an 180,000 property, however they will drop the cost especially when they are eager to sell, good luck.

rosaw pcboadford

In Sydney the typical home cost has ended 10 x the typical salary ($670,000 and $60,000 correspondingly), with 7% rates of interest which are still rising. All Australia’s housing ‘experts’ say “but Australia’s different therefore it is not going to crash. You best buy now or you may never afford getting to the property ladder”. Auction clearance rates have slowed down from 85% this past year to 65% this season.

Aussies are so cynical of property experts right now that many bloggers answer spruiker journalism with comments like “I hear an impending…. POP!”, although other say “you’re just jealous you’ve skipped the boat. Should you bought 24 months ago you would be laughing completely towards the bank at this time! Poor you”.

Some of this seem familiar? How are things in your corner around the globe?

seang ensley

Rule of thumb used to be loan = 3 to 3.5 times salary.

Worked well for decades…….once you start getting away from this the bottom end of the market stops and first time buyers are the foundation stone of the house pyramid.


you dont really want to be flipping houses in this 'economic downturn'… and dont get a house in an crap area.. its all about getting the dodgy house a good neighbourhood and making it the best house on the road… when you’re flipping houses…
try a different tactic.. look to get a good deal on a property with REOs.. houses that have been repossessed…it’s kind of fun too:)

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