Mortgage cuts provide new hope.
Posted by admin on Aug 8, 2008
An economist has stated that recent falls in the cost of mortgages represent a ray of light in the overall mortgage picture, raising hopes that the market may recover soon and that those hoping to find a better mortgage quote will have reason for optimism.
Fionnuala Earley, chief economist at Nationwide, said: “As the cost of mortgages begins to come down, activity could be bolstered and restore some liquidity to the housing market,” although she advised that this will not be an “overnight” turnaround.
Banks and building societies have been able to trim the cost of their mortgage products because swap rates have passed their peak and have been falling recently.
Mark Leaper of moneymatchmaker.com, UK Price Comparison website commented after the Nationwide monthly house price figures for July were released - revealing a 1.7 per cent fall - also said interest rates should soon fall as the slowing economy curbs inflation.
Leaper went on to say that the credit crunch, brought about the collapse in confidence within the US investors had caused real pain for the uk homeowner with unusual circumstances. He add that in recent years, people had started to expect that mortgages and loans would be available, even with a poor credit rating and the loss of these products had really stiffled the markets and added huge pressure and stress onto a large proportion of homeowners.
In addition to the worries of borrowing money, the cost of living is on the increase with British Gas has coming in for criticism over news that it is to impose new price increases a day after its parent company Centrica announced large profits.
The firm has said prices will rise by 35 per cent a day after Centrica revealed profits of nearly £1 billion, a move that has sparked anger among bodies concerned that this could add to debt and poverty, such as those struggling with repayments and needing mortgage help.
Child Poverty Action Group said: “These staggering energy price hikes risk hitting the poorest families hardest. At a time when the cost of living is rising this is bad news for families and will cause further fuel poverty.”
The body called for the company to consider the interests of hard-hit consumers ahead of those of its shareholders.
Energy price comparisons are available from providers right accross the uk, with real savings being made by switched people that are prepared to take the effort to look and switch providers.
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