With the recent problems with the mortgage market in the US a lot of people are predicting that there are going to be similar problems here in the UK. I certainly think that it has made people more cautious before they invest. I do think, that the reduction in profit from buy to let properties has also had an effect on the housing market and I am sure that, as predicted, house prices will start to fall very soon. I am sure it will also becomes harder to get mortgages and also I do not think that prices will continue to fall in teh long run, making it more and more expensive and therefor more difficult for first time buyers to get on the housing market. It seems that we want to be more flexible nowadays with our mortgage repayments, so that we can overpay when we have more money and underpay if we don't. An
Option Arm Mortgage allows this sort of flexibility, as the interest rates are adjustable and loans such as the COSI Index allow the interest payments to be so low that you can afford to pay off some of the principle balance. Or maybe you would prefer a COFI loan
which has it's interest calculated in such a way that it is lower than many other types of loans therefore allowing you to pay it back more quickly. With interest rates likely to rise and house prices definately rising long term, it is a good idea to make sure that you get on the property ladder as soon as you can and pay back your mortgage as quickly as possible.