Credit Crunch
With the next Bank Of England interest rate announcement early next week the pressure will be rising for drop in rates to stave off a potential recession in the UK. During the last 5 years house prices have risen by over 50% which is almost 7x average salery! Mortgage approvals have dropped to their lowest ever level and recent drops in the lending rate have not been passed onto clients leaving the market fragile.
The constant media attention and Northern Rock have taken their toll on consumer confidence and left it low, The Bank of England have now compounded matters by saying that prices may fall by up to 30% and stay at those levels.
Now is not the time to buy property in anything less than a surefire area, buy to let is out the door and property abroad forget about it! or so they would have you think…if you have enough credit or equity it may be a great time to move in the months to come and get a bargain! Forget the Credit Crunch!!
Get details on the next mortgage rate change direct from the Bank of England.