Rate cut pressure for Brown as working group emerges

Grovelawn Financial News 09/04/2008

← FSA officials quit | News For April 2008 | Interest rate cut to 5% →

Deputy chairman of the FSA to head up team

As the Alliance & Leicester is expected to hike up it's rates further this week, the Bank of England is coming under intense pressure to lower interest rates. The 2.5% fall in property prices during March has according to Halifax, knocked off typically, £5,000 for a property in the UK. In some reagions the average is nearer £9,000. Wales, the South West and the West Midlands have shown a negative have been particularly badly hit with properties worth less than a year ago.

Around 1.4 million home owners will need to remortgage in the next few months and some may find they are hard pushed to find an affordable deal, especially if they have little or no equity in their property or have incured bad credit. The Chancellor, Alistair Darling, has announced the formation of a group of industry insiders who will form a group with the deputy chairman of the FSA acting as head, to consider the improvement of liquidity in the mortgage market. The last of the lenders pulled out of offering 100% mortgage deals this week, further putting the pressure on first time buyers as they struggle to get a foot on the housing ladder.

← FSA officials quit | News For April 2008 | Interest rate cut to 5% →

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