MPC fails to cut base rate says National Homebuyers
The Bank of England has maintained the base rate of interest, spelling bad news for homeowners in financial difficulties.
[UKPRwire, Wed Jan 16 2008] Members of the Bank's Monetary Policy Committee (MPC) chose to hold the rate at 5.5 per cent, with fears over the economy making them cautious about reducing it.
Anyone struggling with financial difficulties will now have to endure more difficult times and may seek a fast property sale in order to avoid repossession.
"Given the uncertainty over the extent of the economic slowdown, the MPC was right to resist cutting interest rates today," said Trevor Williams from Lloyds TSB Corporate Markets.
"We've seen a mix of data so far in January and after cutting rates pre-emptively in December, the MPC members have now voted to pause for thought.
"Rising energy prices and their knock-on impact on inflation, a slowdown in the housing market and weakening retails were all factors for the MPC to consider," he continued.
Fast property sale expert Julian King says, "Although rates have remained, we are reminded that 5.5 per cent is still high. Those who are already stretched and are coming off their fixed rate mortgage are going to find things extremely hard.
"Homeowners facing or predicting financial difficulty are advised to consider their options, particularly as we are predicting an in increase in repossessions this year".
Mr King is a Director of National Homebuyers, the UK's leading fast property sale firm that guarantees to make a cash offer to purchase each property quickly, regardless of its condition or location. The company is a leading provider of Mortgage Rescue Schemes such as Sell and Rent Back when the homeowner can sell their property for cash, but remain in their home as a tenant.