According to a new report, the middle classes are likely to benefit the most from the property market crash after making the most of the lower financial interest rates.
The owners of properties worth between £450,000 and £750,000 have found it easiest to use the low interest rates to make overpayments on their mortgages.
As well as having a larger disposable income, the middle class have seen the biggest falls in their monthly payments as the base rate has dropped from 5% in October to lows of 0.5%.
The study by PropertyIndex.com said the additional equity built up by owners of middle-market properties had helped ‘cushion’ them against property market falls.
Lee Bramzell of PropertyIndex.com said: ‘Thousands of middle-class homeowners have prudently compensated for the falling market value of their own home by overpaying on their mortgage and therefore maintaining their level of equity.’
Researchers have also warned that with financial interest rates expected to start rising again next year, borrowers may only have a limited ‘window of opportunity’ to benefit from the falls.
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