Housing Prices May Crash - Part 2
Bank of England Cutting Rates
The Bank of England is expected to cut rates again by .25 percent. The interest rate is already at 5.25 percent, but the current issues with the mortgage industry may have these rates lowered yet again. Experts do not believe that the rate cut is going to make a lot of difference to the lenders.
The lenders have been increasing their rates before offering deals to consumers. So if the lenders are not regulated to cut their rates, the consumers will not see the benefits only the bank’s lending the money.
Ray Boulger is part of Charcol Mortgage Brokers. He believes that a rate drop of .75 percent on the 5.25 percent interest rate is the only way a consumer is going to benefit. The IMF has also spoken regarding the housing prices and mortgage industry.
They have found the housing prices increasing over the last decade are unexplainable. They have never seen prices increase in the way they have in the last ten years. If the projection that housing prices will crash is true the average home could be worth 137,000 pounds rather than the 196,000 pounds they have been at in the last few years.