Failure to pass on rate cut spells woe for many says National Homebuyers

Many British households face the prospect of financial difficulties in the months ahead because lenders have failed to pass on interest rate cuts.

[ClickPress, Tue Feb 19 2008] Philip Hammond, Conservative shadow secretary to the Treasury, made the comments after Capital Economics revealed that a number of lenders did not pass on December's 0.25 percentage point cut to the base rate of interest.

It means that large numbers of Britons are struggling with an increased cost of living as well as high mortgage rates.

Mr Hammond warned that unless something changes quickly, many people face financial difficulties in the months and years ahead.

"This is more bad news for homeowners already feeling the pressure from soaring living costs and falling take-home pay," he commented.

"Gordon Brown dithered over the Northern Rock crisis last autumn and we have seen the cost of funds to mortgage lenders soaring. The Bank of England base rate no longer reflects their borrowing costs.

"It is clear that the meltdown in the financial markets is starting to take its toll on ordinary families," continued Mr Hammond.

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 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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