Thursday, 10 April 2008

Interest rates down to 5%

It has been announced by the Bank of England that interest rates will be cut by one quarter of one percent to 5%. this is the third cut since December and had been widely predicted. I rather suspect that we will see further cuts before this "economic downturn" passes us by.

As someone who is in the process of selling a house without needing to buy another I am finding all the continuing talk of plummeting house prices rather bloody annoying. The media seem hell bent on talking us into recession and the Great British Public are beginning to run about like headless chickens - DON'T PANIC! The vast majority of people do not have anything to seriously worry about. A correction downwards in house prices, whilst uncomfortable for me, is of benefit to those trying to get onto the housing ladder. The removal of 100% mortgages less so but should you be buying a house if you need a 100% mortgage or should you not be better off trying for something a little cheaper? I realise that these thoughts may will sit ill with some of those living in London and the Home Counties but there will be many in other parts of the UK who feel that far too much attention is paid to those two areas anyway.

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