Interest Rate Cuts Needed

It has been reported that interest rates in the UK could be cut by 250 basis points so as the stop a downturn.

It is likely severe rate cuts will have to be made by the Bank of England to prevent and undoing of the economy. The rates must be cut by 1% at least.

The economic growth in the UK will be 1% by the end of 2007 and 0% going into the New Year. If rate cuts are made this should help the third and fourth quarter of 2008.

Bank Rate Changes

Mortgage borrowers could be about to benefit from two decreases in the bank rate if the Bank of England’s predictions are correct.

It is thought that the rate will be cut from 5.75% to 5.5% in the first quarter of 2008 and down to 5.3% in the second half of next year.

Those with adverse credit have already felt the tightening of lenders criteria.

The Bank of England expect a slower growth rate in the UK economy in 2008 with gross domestic product growth to slow to 2.4% down from the 2.7% prediction for 2008.

Landlords Ready to Take on More

About 23% of landlords consider they will increase their portfolios but almost 60% expect theirs to remain the same.

In times of financial problems people will still need a home to live in.

Again investors are being warned to enter the market with their eyes open and to remember that it is no longer a way of getting rich quick. Buy to let now needs medium to long-term investments.

Location is still very important but some areas are now experiencing a flood of newbuild flats making it difficult to rent or sell these properties.

One in Sixty A Landlord

It is thought that there are now one million private landlords in the British Isles. This accounts for one in sixty people being a landlord.



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