8% interest rates could create double dip recession
Published on September 7, 2010 | Author: kayleigh
Filed Under Housing Market News | Leave a Comment
Don’t become a statistic
Britain is heading for a double dip recession caused by 8% interest rates increase and a 10% inflation increase, claims Andrew Lilico, chief economist at Policy Exchange. Lilico does not believe the Bank of England will raise interest rates above 2% before late 2011 but they could hit 8% in the coming years. Moreover, he says inflation and interest rates will rise rapidly at the same time too. He says: “Since interest rates are set to rise they will in turn raise mortgage rates. The outcome will inevitably cause more inflation.
“To keep inflation down to only 10% for one year, the economy will have to be able to tolerate interest rates of perhaps 8%, but there is a risk that between now and 2012, households will not take the opportunity to reduce their debts by enough, and so the economy will not be able to tolerate 8% interest rates without the mass defaulting on mortgages that will cause a rise in repossessions. If that is the case, then interest rates may have to be kept lower for an additional nine months and the consequence will be inflation peaking at 20% rather than 10%. Causing inflation to increase to 20% could cause a surge in financial difficulties within the UK. The British economy has now found itself in a ‘catch 22’ situation.
If you struggling to find a buyer for your house, Quick Cash For Properties may have a solution for you. Simply call us on 0800 933 6137 today and sell your house fast with us.
Are flat loans causing UK double-dip?
Published on September 7, 2010 | Author: kayleigh
Filed Under Housing Market News | Leave a Comment
Why wait to sell? receive an offer for your home in as little as 24hrs
The latest figures to be released by the Bank of England show that 48,722 mortgage approvals in July, up from an upwardly revised 48,562 in June. But analysts say the approvals are effectively moving sideways and are at such a subdued level they are causing concerns.
New figures from the Building Societies Association (BSA) show that total mortgage advances by mutual’s reached their highest level so far this year at £2 billion during July but this is masking the true situation as once redemptions and repayments are taken into account, net lending continued to contract, with homeowners repaying £379 million more than they borrowed in the month.
‘The data continues to highlight the subdued level of activity in the residential property market, despite the stamp duty holiday for first time buyers of homes worth up to £250,000. The total number of mortgages approved per month has been fairly stable since the beginning of the year, fluctuating within a narrow band of just 2,000. In the first seven months of 2010, almost 340,000 mortgages were approved. This is higher than in the comparable period of 2009 when just over 310,000 mortgages were approved, but is well down on historic norms,’ said Simon Rubinsohn, Royal Institution of Chartered Surveyors chief economist
‘A lack of mortgage finance remains a key problem for many borrowers looking to take their first step on the property ladder, with the high deposits required still proving to be an obstacle for many. Uncertainty over the outlook for the market may also be discouraging would be buyers. This is reflected in developments in the rental market. The latest RICS Residential Lettings Survey released last week showed tenant demand continuing to grow strongly and rents rising due to a lack of supply,’ he added.
Adrian Coles, director general of the BSA, admitted that the situation is challenging due to heightened uncertainty about job prospects and household incomes, these alone could potentially limit future demand and this could make it difficult to sustain the growth.
If you struggling to find a buyer for your house, Quick Cash For Properties may have a solution for you. Simply call us on 0800 933 6137 today and sell your house fast with us.
Mortgage Lenders Adding Thousands To Home Loans
Published on September 7, 2010 | Author: melvin
Filed Under Housing Market News | 1 Comment
Are you a home seller still waiting to sell?
According to some of the latest news, experts are warning that mortgage lenders could increase their standard variable rate at any time. Some mortgage providers are already charging a rate of 5%, which is 4.5% above the Bank of England’s base rate of 0.5%.
Expensive mortgages combined with strict lending criteria caused the flat level of property loans in the past couple of months. Property market is struggling to recover as the current number of home buyers is shrinking. With the upcoming spending cuts, more unemployment is to come, which will put home sellers as well as home buyers in an even more difficult position.
If you struggling to find a buyer for your house, Quick Cash For Properties may have a solution for you. Simply call us on 0800 933 6137 today and sell your house fast with us.
Detached House Prices Went Up £91 A Day
Published on September 7, 2010 | Author: melvin
Filed Under Housing Market News | 1 Comment
Is your house too expensive to sell?
According to a survey published in the Halifax Property Type Review, despite the credit crunch, recession, banking crisis and the poor state of UK’s economy in general, it is becoming harder and harder for home buyers to move to a bigger, detached property. The average house price went up from £266,060 from March to June 2009 to £299,295 during the same time in 2010.
It has been reported that detached properties are now the priciest properties in the UK, with their prices 63% above the average UK house price. A detached house price has gone up £91 a day over the past year. Terraced houses and bungalows were not that far behind. Flat prices seem to be amongst the only ones that failed to double during the last decade.
The sale figures of detached houses fell down from 21% of all houses sold in 2000 to only 15% in 2010. With the current troubled economy and property market, buyers suffer from insufficient finance availability to get on the property ladder.
If you are having problems selling your house and need to move quickly, call Quick Cash For Properties on 0800 933 6137 now. We can sell your house quickly, in as little as 24 hours.
RBS To Cut 3,500 Jobs
Published on September 3, 2010 | Author: sona
Filed Under UK Debt | Leave a Comment
Is your job situation affecting you financial stability?
More than 80% of the Royal Bank of Scotland is owned by the government and it is planning to cut 3,500 of jobs. 318 of its branches have been sold to Santander, which caused a third of the job losses. In 2009, it estimated that 27,000 employees would lose their incomes. The figure is now to reach 30,000 jobs instead.
Cuts in spending budget will cause the unemployment rate to increase even further, when they come into force. More people will struggle mainly with their mortgage repayments, especially when the interest rate goes up.
Quick Cash For Properties can help you with your money problems now, easy and hassle free. Call us now on 0800 933 6137 and find out how we can help you.