David Alexander, managing director of DJ Alexander Ltd, said: “A generation of homeowners has grown up with extremely benign interest rates and are unaware of just how they can rise in a relatively short period. Mortgage loans in the UK have risen to up to six times annual earnings , the highest level since 1997 , according to a report by DJ Alexander . The asset management firm warned the extreme increase risked causing a market crash . It added that , after average house loans peaked at £ 190,032 ( $ 245,600 ) in September 2007 , it took them two years to recover after the 2008 crash . However , managing director David Alexander said , although some ratios were very high , they tended to be on the more " extreme edges of the market " .
Mortgage loans in the UK have risen to up to six times annual earnings , the highest level since 1997 , according to a report by DJ Alexander . The asset management firm warned the extreme increase risked causing a market crash . It added that , after average house loans peaked at £ 190,032 ( $ 245,600 ) in September 2007 , it took them two years to recover after the 2008 crash . However , managing director David Alexander said , although some ratios were very high , they tended to be on the more " extreme edges of the market " .