1bloc.com

In London, there is a large category of real estate in the £2m/$4m to £5m/$10m, with the average price in the Kensington district of London now in excess of £1m/$2m, these super-prime pieces of real estate also carry super-prime mortgages.

And this is producing a lot of nervous mortgage companies who supply the funds for these high-end real estate purchases, at this level of pricing the slightest shift in interest rates on a £2m/$4m mortgage will result in huge leaps in monthly mortgage payments.

With chaos in the world mortgage business caused by the opposite end of the market, sub-prime, real estate mortgage debacle, the ripple effects could cause very serious problems at the very top end of the London mortgage market.