Interest rates stay the same
There had been speculation that the Bank of England would reduce the base interest rate but yesterday they announced that the rate would stay the same at 5.75%.
House prices, although August saw property values still rising slightly, now seem to be slowing down with predictions that house prices may reverse over the next few months. The latest figures show that September had a 0.6% drop in average house prices and the overall annual price growth has dropped by 9.5%.
Areas most affected have been Norther Ireland and the North of England. The Bank of England obviously feels that the UK economy is still going strong and will hold its own despite the global credit issues and Northern Rocks rocky time.
Mortgages are starting to become less profitable for lenders. As the costs go up for lenders, they will pass this onto the home-buyer and it is the consumers that will ultimately suffer, as we will have to pay more to borrow money.
It still remains to be seen if this will current base rate will last. We may still find we have a drop in the interest rate before the end of the year.
Related Articles
The christmas holiday period seems to get longer and longer and the increased cost of presents, wrapping, parties and food bills just grows each year. The latest christmas toys for kids are now averaging at about £40 each, and the pressure to get bigger and better toys than everyone else can create a lot of pressure on you. It's no wonder that Christmas can be one of the most stressful times of the year. There is enough to think about without worrying about how you are going to finance your way through the holiday season.
Read on...
Right, you have decided that you need a loan. The next stage is to work out how much you need to borrow, but you also need to consider how much you can realistically afford to repay every month until the loan is fully paid off.
Read on...
There are so many financial companies wanting to lend you money, it is hard to know who to choose. With all the competition available it is easy to get confused and be mislead. Many high street banks and building societies can be un-competitive with their prices, even if you are a loyal customer of theirs. Most lenders do not work on loyalty so don't feel obliged to go with your usual bank.
Read on...
It's always worth having a bit of a spring clean of your finances every few months and coming up to April (the 4th month since our New Year clear out), we thought it high time to make sure you aren't overspending in any area of your life.
Read on...
Learn from other people's mistakes and follow this sound advice to help you avoid losing money and suss out who are the con artists.
Read on...
Related News Items
Legal & General, one of the largest insurers have announced a shock new tactic when it comes to arranging the pension payouts of their customers. The initial pilot stage has just finished, so only time will tell if this will affect the number of new customers they get.
Read on...
Data detailing the amount of credit card losses through fraud in 2007 amounted to over £290 million. However after an investigation performed by the BBC there are now worries that this figure was drastically underestimated by as much as £500 million.
Read on...
People looking at saving and investing in a more ethical, 'green' way is on the increase. And whilst a decade or so ago ethical saving and investing was deemed as being not particularly profitable, nowadays it has shown to be a fairly sound way to investment.
Read on...
As the property market starts to slow and take a slight downward turn, estate agents and homeowners have been looking at different ways in which to advertise and sell their properties. This latest idea has crossed over the transatlantic ocean. Known as Open House, this format of promoting your property is very popular and common in the US.
Read on...
The Royal Institution of Chartered Surveyors (Rics) has reported a continuation of house prices falling. Not only are property prices gradually dropping but so to is the number of potential buyers. Enquiries about properties for sale has reduced for the tenth month running.
Read on...
