Base rate may rise in November says National Homebuyers

The Bank of England has decided to hold the base rate, as predicted by almost all economists.

[UKPRwire, Thu Sep 27 2007] However, some experts are now predicting that the Monetary Policy Committee (MPC) will increase the rate again as soon as November.

After five increases in the last 14 months, it would be a huge blow for homeowners who may run into financial difficulty as they try to keep up with rising mortgage payments.

"With five interest-rate rises in little over a year, the Bank of England is right to adopt a 'wait and see' approach," said Melanie Bien, director of Savills Private Finance.

"We aren't ruling out another quarter-point hike though, possibly in November.

"The reason for this is that rising farming costs may result in higher food prices, pushing inflation above the magic two per cent target. But for now, with uncertainty in the credit markets and slowing house prices, a hold is the right decision," she added.

Further base rate rises could spell a disaster for many homeowners and may lead to more people seeking a quick property sale.

Julian King of National Homebuyers says homeowners looking for a quick sale are encouraged to start their marketing process now. "The lack of buyers means that the selling process will take a lot longer than anticipated" says director Julian King.

"Even an estimated 'wait' on the market is unlikely to prepare the vendor for the delays and lack of viewings in the coming months. The effect of the rate rises so far is enough to double the amount of enquiries to National Homebuyers from people who now need to sell their property quickly.

"We pride ourselves on our vastly differing from estate agents approach to property sales. Unlike with estate agents, vendors do not need to wait for viewings or buyers, we do not require a Hips pack to be in place and we do not charge any commission for our fast property purchase services".

National Homebuyers, the UK's leading quick house buying firm, guaranteeing a fast property purchase for vendors who need a quick sale.

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