National Hombuyers: 'Doubts raised over UK ability to cope with crisis'
A future of financial difficulties appears to be on the cards for many as shadow chancellor George Osborn questions whether the UK can cope with the current financial crisis.
[UKPRwire, Thu Feb 07 2008] Mr Osborn has expressed his doubt that the country is capable of weathering the storm, which has largely come about due to collapse of the US sub-prime mortgage market.
During an appearance on BBC One's 'The Andrew Marr Show', the shadow chancellor hinted that many Britons face financial difficulties in the months and possibly years ahead.
"We are heavily in the red, we're more in the red than any other European country," he told the show.
"I was at a meeting here in Davos yesterday evening with two other finance ministers, and they were talking about how they had surpluses at the moment, and what they were going to do with their surpluses to help their countries weather a possible severe downturn.
"That debate can't even be had in Britain because we've got the biggest budget deficit in Europe, and indeed we're now spending £30 billion a year simply on interest payments," continued Mr Osborn.
Julian King of National Homebuyers says that to increase consumer spending he expects an interest rate cut in February, but it is unlikely to be passed onto the homeowner.
"Banks are unlikely to afford any benefit of a rate cut to the consumer as they have worries of their own. This will come as terrible news to homeowners who are close to the wire with their monthly outgoings.
"Homeowners facing financial difficulty, in a property market where prices are falling by around £50 a day, should consider a quick property sale".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm, guaranteeing to make a cash offer to purchase any property in the UK, regardless of its condition or location. The company also offers a series of other mortagage rescue schemes such as Sell and Rent Back.