Mortgage rates rise as base rate falls says National Homebuyers

Many homeowners are struggling with financial difficulties despite the recent cuts to the base rate of interest.

[ClickPress, Mon Feb 18 2008] That is according to mform, which said that many tracker-rate deals have actually become more expensive since the cuts were announced.

The Bank of England Monetary Policy Committee (MPC) announced a 0.25 percentage point cut in December and another in February.

However, mform has reported that some tracker-rate deals are now 0.23 per cent more expensive than they previously were.

Francis Ghiloni, marketing and business development director at the firm, said that further rate cuts are needed to help people avoid financial difficulties.

"The Bank of England rate cuts are not feeding through to borrowers with trackers as lenders re-price," he commented.

"Mform argued that a 0.5 per cent rate cut this month was the minimum that was needed to help both borrowers and lenders and our analysis shows that another cut is needed," continued Mr Ghiloni.

The base rate of interest currently stands at 5.25 per cent.

Fast property sale expert Julian King adds, "The cost of owning a property is increasing as its value is spiralling downward.

"People looking to sell their home should consider a fast property sale, as selling homes on the open market increases in inefficiency, cost and uncertainty.

"Add the cost of a Hips pack, the 2 in 3 chance of the chain collapsing and the fact that properties are going down in value by up to £50 a day in some areas means for many this could lead to repossession or at least futher financial difficulty".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm. The company does not require the vendor to have a Hips pack in place and completes at a timescale to suit the vendor.

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