This weeks blog post will be about how Mortgage lending has increased nearly 20% in only one year. The article "Mortgage lending strongest since 2008, says CML" from the BBC website, which as already mentioned informs about the increasing Mortage lending that is at an all time high since 2008. The article satets that the prices of houses have gone down to just about an avereage of 70000$ where as the mortages went up to over 41000 $
The supplie as well as the demand for houses to be sold, is decreasinf drastically which is not good for the amrket itself, but now that the mortgage has gone up so high there are new oppertunites.
To remind y'all what Mortgageg Financing was:
When you want to buy a property, however do not hav eth emoney to pay everythign at once, so you pay somethign and the rest of the payment is done in smaller rates that are managed so hat it will not affect your other obligatory cost in a month.
Advantages of Mortgages:
- makes home ownership affordable ( at some poitn everyone wants to own a home of their own)
- cost effective way of borrowing money
and Disadvantages of Mortgages:
- you pay back back a lot more than youwould have had to pay originally
- you have to watch out for the fees that are charged
In conclusion it is to say that people are depended on Mortgages, however that with them there are also some negative aspects.
No knowing this, which way of financing would you choose if you had to buy a new property for your business?
3/4 - a good attempt to link this very financial topic to the course and sources of finance. The post needs some serious proof reading though! Furthermore, where are the links to the CUEGIS concepts? I also think that you could have done more in linking to more areas of the course. If Mortgage lending goes up, what affect does this have on the economy?
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