MPC should have cut rates says National Homebuyers
The Bank of England's Monetary Policy Committee (MPC) failed to cut the base rate of interest today, potentially leading to financial difficulties for many.
[UKPRwire, Wed Mar 19 2008] It means that the base rate remains at 5.25 per cent and many homeowners will be struggling to keep up with their mortgage payments.
In response, mform has warned that the lack of a reduction from the MPC is likely to lead to bigger problems and huge financial difficulties for many borrowers.
"We believe there should have been a 0.25 per cent reduction," said Eamonn Rice, mform chief executive.
"Lenders are becoming increasingly choosy about who they lend to and on what terms and that will impact on monthly mortgage payments.
"We acknowledge that inflationary pressures are building and accept that there is concern. However a rate cut is needed and this decision will ultimately lead to bigger problems for mortgage holders," he added.
Cash for homes property expert Julian King says, "People in financial difficulty should consider a quick sale of their home.
"The number of repossessions is expected to hit 45,000 in 2008 and homeowners in trouble should be aware that there are products to assist them. Sell and Rent Back is where you sell your property for cash, but remain in your home as a tenant".
Mr King is a director of National Homebuyers, the UK's leading quick property sale and company and Sell and Rent Back provider. He is also a founder of APBA [Approved Property Buyers Association] which is calling for regulation in these new industries.