Home loan approvals in the UK were up 81.4% in August 2009 compared with a year ago. Record low interest rates following the sharp reduction in property prices last year have helped to stabilize Britain’s housing market, according to Reuters.
Amit Kara, UK Economist at UBS, noted that these latest reports “…provides more evidence that funding conditions and buyers’ confidence are improving as the housing market stabilizes,”.
This is great news for those looking to take advantage of the low borrowing interest rates to invest in a second home abroad. Lower costs of borrowing and significantly reduced property prices in traditional second home destinations such as Spain, means that second/holiday home is now more achievable than ever. Spanish property is a prime example of where overseas property buyers looking for an affordable holiday home, can now take advantage of the low interest rates on offer.
As confidence returns to the UK market, prices are beginning to show signs of bottoming out with a return to growth. With the UK property market stabilizing, property buyers are now confident to explore other overseas markets.
Source: Reuters UK
