A string of bad economic news, has changed the outlook for interest rates. With US interest rates being cut to the historical low of 1%, many are now suggesting UK rates could quickly come down, closer to US Levels.
See: The Case for Lower Interest Rates
Other development in the Housing Market include:
House Prices drop £30,000. According [...]
Readers Question: Can you explain who is the loser are and why others may gain when house prices fall?
Those Who Gain From Falling House Prices
First Time Buyers Trying to Get on the Property Ladder. House prices have fallen at least 15%. This means the average house is about £20,000 cheaper. This reduces their long term [...]
Readers Question: I am British and live abroad but want to buy in the UK when the market hits its bottom prices. When do you feel that this will be?
It is hard to say, though I think another 12 months of falling house prices is likely.
If you look at historical UK House prices, in the [...]
The impact of the credit crunch has now caused the UK to enter into an official recession, with economic output falling 0.5% in the last 3 months. The Credit crunch is now not just hurting the housing market, but the wider economy.
Major effects of the credit crunch
Difficult to borrow, especially difficult to get mortgage.
Bank of [...]
Today, I receive a nice surprise from my mortgage lender, Standard Life. Standard Life had reduced there APR by the full 0.5% that the MPC cut base rates. This meant by 47 year interest only mortgage was reduced from £627 to £571. It’s a significant saving, and if interest rates fall by another 1%, my [...]
The Credit crunch has led to a raft of books on explaining why it occurred and how we can get out of the crisis. These are some of the best selling books. The only problem is that the crisis is developing so quickly, they can quickly become outdated. I’m sure 2009 will see even more [...]