Base rate to remain high according to National Homebuyers
Many homeowners in the UK may face financial difficulties as the Bank of England looks set to hold the base rate of interest again next month.
[UKPRwire, Thu Mar 20 2008] It follows February's decision to freeze rates despite the fact that many people across the UK are struggling with financial difficulties.
Since then, the Bank of England has increased its inflation expectations from three per cent in November to 3.3 per cent last month.
Paul Dales from Capital Economics explained why this is likely to prevent the Bank from cutting interest rates in April.
"Some of the rise may be a temporary impact from the latest recent round of utility price hikes and rises in food inflation," he revealed.
"But the danger is that inflation expectations will remain high once these effects start to fade, as they did last year.
"For now,… this will clearly spook the MPC [Monetary Policy Committee], increasing the chances that interest rates will remain on hold in April and perhaps even May too," added Mr Dales.
Fast property sale expert Julian King adds, "Homeowners facing financial difficulty or even repossession should be aware that Mortgage Rescue Schemes exist to prevent their home being taken.
"National Homebuyers is the UK leader in Sell and Rent Back products which allow the homeowner to sell their property for up to full market value and rent it back.
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm, guaranteeing to make an offer to purchase any property in the UK, regardless of its condition or location.
The MPC is due to announce its next base rate decision on April 10th.