Interest rates seem set to fall in the New Year, with the Bank of England reportedly set to announce a further quarter-point drop next month. Experts have forecast that the cuts will be passed on to customers, with rates set to fall by a couple of per cent, meaning some offers may be available at around five per cent.
The five interest rate increases in the last 28 months have made life harder for families struggling to pay their mortgage. Although a quarter-point drop would only see typical mortgage repayments reduced by £20, the cut helps banks to lend at a lower rate and helps to restore consumer confidence. Perhaps the key motive behind a reported further base rate reduction is to invigorate the struggling British housing market, which has seen a slight fall in house prices over three consecutive months.
Loan Rates Forecast to Fall Next Year
Loan Rates Forecast to Fall Next Year
Mon, 24 Dec 2007
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