They say an Englishman’s home is his castle but the UK has a particular problem with our addiction to house price inflation. Before the crash, house prices trebled in the space of a decade. Great for those that bought at the right time but not for others.
As a nation, we are used to borrowing beyond our means. The UK mortgage market had the second highest loan-to-value ratio of any OECD country before the financial crisis. At a household level, first-time buyers who were offered 125 per cent mortgages and found themselves in negative equity following the crash……………………………………….Full Article: Source