UK Home Prices Outpace Salary Growth

According to a recent study by the Office of National Statistics (ONS), UK house prices are outpacing the growth in average wages by almost double. This means it is becoming more and more difficult for people to purchase a new home as their buying power compared to home prices grows smaller. This is having an interesting effect on the mortgages market. On the one hand people are finding it harder to raise enough for their mortgage down payment and more people are opting for mortgage protection to make sure they are able to live with their high mortgages. On the other hand current home owners are benefiting from the rise in house prices as they apply for remortgages and can borrow more money against their house.