Mortgage Rate Cut to 5%
The Bank of England surprised everyone yesterday but cutting the rate by 1/4 of a percentage to 5%. The trend has been maintain, lower, maintain, lower but few were expecting another drop so soon.
You can’t have escaped the doom and gloom (and even a bit of panic) in the media in the last few days about the bottom falling out the property market, the state of play is that lenders have had a reality check in how much, and who, they lend to and in addition in the wake of the crisis in US finance the rates of lending between lenders has risen.
While the media will tell you this is all bad, there are up sides in that less people will get stupid over mortgages on overpriced homes and in fact with propety prices falling in some areas first time buyers are actually finding it easier to buy in some areas of the UK!
The facts are that if you do your homework on an area and buy in an everpopular area where property never stays on the market long, and never pay more than what you your head tells you should be paid and have a small deposit to spend you will never be in too much trouble. Since the property market goes in cycles you will never need to wait too long to be able to buy or sell.
If its a buyers market then you just sit it out, there are more people looking for property than ever before so property in good locations will never lose equity.