This economic growth, of course, comes at a price. The previous 5 or 6 years of boom have been financed by compliant home-owning consumer happily re-mortgaging regularly, and using cash so released from their rapidly appreciating homes to purchase goods and services that would otherwise have been regarded as expensive luxuries. At some point, that cash would need to be repaid, and gamble was that boom would continue long enough so that rising salaries and general inflation would reduce cost of this borrowing to manageable levels.

The tipping point appears to have been reached towards end of summer 2004, however, far sooner than hoped for by world governments basking in reflected glow of easy prosperity. Analysts at www.mortgagedown.com point out that in most countries, house price boom has run out of steam and has begun downward swing towards normality, and consumer spending boom that accompanied it has necessarily come to a dead stop too. Across world, realtors and estate agents bemoan fact that sales volumes have dropped by 60% or more, and that 'something must be done' or there will be 'dire consequences'. For estate agents and a very small minority, true. But not for majority!

What do I mean by this? Simple. For majority of population, a house price crash is either irrelevant, or just what doctor ordered. Lets look at various groups to see exactly why this is true.

The first group are 'first time buyers'. These are a relatively small group of people who do not currently own - they rent, or live with friends and family. This group also include people who DID own, but have sold up and exited market, converting their paper gains into hard cash. As first time buyers are priced out of market almost everywhere, and 'STR' group are effectively priced out by their beliefs, they have everything to gain from a substantial house price fall. It will allow them to purchase property, where they currently can not.

A brief list of some of most common Mortgage terms.

Adverse Credit The term used if borrower has a poor credit history. This could include previous mortgage or loan arrears, bankruptcy or CCJ's. Other terms used to describe an adverse credit mortgage include:

Bad credit mortgage Poor credit mortgage Non status mortgage Credit impaired mortgage No credit mortgage Low credit score mortgage

APR (Annual Percentage Rate) The interest rate reflecting cost of a mortgage as a yearly rate. The APR provides home buyers with ability to compare different types of mortgages based on annual cost of each.

Arrangement Fee The fee you pay your Lender in return for them providing you with a mortgage. Usually paid on completion or with your application, these fees usually apply when you take out a fixed rate, discount or cashback mortgage.

AST (Assured Shorthold Tenancy) A form of tenancy that gives landlord right to repossess their property after a set amount of time laid out in tenancy agreement. New tenancies are automatically ASTs unless otherwise stated.

Assured tenancy The landlord can charge a market rent (the current rate for similar property in that area) and take back property under certain conditions, as set out in Housing Acts of 1988 and 1996.

Bridging Loan/Finance Short term loan to enable purchase of one property before sale of another essentially releasing funds that are required for purchase. You should always consult a professional before considering any bridging finance as it could be a solution that is worse than problem.

Brokers Fee A fee charged by an intermediary or advisor for locating most appropriate mortgage for borrower.

Buildings insurance Insurance you can take out when you buy a property that will cover cost of any damage to house and or contents..

Buy to Let A mortgage meant for those who wish to purchase a property to rent out to others. The decision on whether you are able to repay this type of mortgage is often based up on future rental income from property rather than personal income of you borrower.

CCJ (County Court Judgment) A judgement reached in County Court generally realted to non payment of a loan, mortgage etc debt in general. If you pay off debt, CCJ will be satisfied and a note is put on your records that states this.

Chain A housing 'chain' made up of a number of buyers and sellers, essentially line of buyers and sellers involved in each house move.

Charge Any right or interest, especially with a mortgage, to which a freehold or leasehold property may be held. Basically a charge is claim lender has on property until mortgage or loan is satisfied.

Completion The term used when seller and buyer exchange finances required to buy a property through their respective solicitors. At exchange of contracts a deposit, usually 10%, will have been paid. At this point buyer becomes legal owner of property.

Conveyance The legal process in which ownership of property is transferred from seller to buyer. Generally undertaken by a solicitor, or licensed conveyancer.

Early redemption fee If you decide that you want to sell your property or remortgage then you will be redeeming you mortgage early. Most lenders charge a penalty fee, especially during any period of a fixed, capped or discounted rate. Be sure you are clear about any potential penalties when you are about to take on a mortgage.

Equity and negative equity The amount of value in a property that isn't covered by a mortgage - simply take amount of mortgage from valuation to work out equity. vThis is where money you owe on mortgage is greater than value of your property.

Exchange of contracts The contract is a written agreement that lays out terms between buyer and seller. When both parties exchange contracts, usually weeks before completion, deal becomes legally binding. Often a deposit of around 10%, is paid at this stage.

Fixed Rate A set interest rate on a mortgage fixed for a period of time. This varies from lender to lender.

Freehold If you are property owner outright then your property is freehold. Most houses are freehold wheres many flats are leasehold, since you are not owner of whole building containing flats.

Gazumping If you are in process of purchasing a property and your offer has been accepted but seller gets a better offer, before you complete, and takes it then, you've just been 'Gazumped'.

Interest Only Mortgage A mortgage whereby borrower is only required to pay inerest on amount borrowed during mortgage term. It is borrowers responsibility to ensure that enough funds will exist (either through an investment policy or other means) to repay full mortgage at end of term.

Intermediary A mortgage broker or advisor who finds most suitable mortgage for a borrower and arranges mortgage on their behalf.