Rate cut will be short-lived according to National Homebuyers

The base rate of interest is expected to be higher in a year's time than it is today, spelling financial difficulties for many UK homeowners.

[ClickPress, Mon Feb 18 2008] According to research from Lloyds TSB, 27 per cent of UK consumers anticipate seeing rates rise again in the next 12 months.

That is up on the 25 per cent who thought the same in January and is the first upward movement for six months.

A rise in interest rates would most likely lead to financial difficulties for many people and large numbers will seek a fast property sale in order to avoid the potentially devastating times ahead.

"Our survey suggests that an interest rate cut today may do little to boost confidence in the short run because of the view that it will be reversed within a year," said Trevor Williams, Lloyds TSB Corporate Markets' chief economist.

"Consumers are clearly increasingly feeling the strain of higher prices - energy and food in particular - and this is starting to convince them that the Bank of England will be forced to keep interest rates high in order to keep inflation under control.

"As far as consumers are concerned, any respite granted in interest rates today {February 7th] will be short-lived," he continued.

Fast property sale expert Julian King comments, "It's unlikely that the rate cut will really be passed onto the borrower.

"Thousands of homeowners are finding that the only way to resolve their financial difficulty is a fast property sale through a quick sale company like National Homebuyers.

"We anticipate that, despite the cut, we will continue to see the number of people needing a fast property purchase rise".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer on any property in the UK, regardless of its condition or location. The company also offers the Sell and Rent back solution for homeowners

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