Expert
Loan News
19 November 2007
The news this week from several organisations connected to the
finance industry concerned falls in mortgage applications and home
prices across most areas of the UK. This confirms that the UK
economy next year could be heading towards uncertain times. With
inflation now above the target Bank of England rate, interest rate
cuts could be on the way. Although this maybe good news
for existing homeowners and those seeking to take out a cheap
personal or secured loan, there is fear among some economists that
by cutting interest rates which is a tried and tested method of
boosting consumer confidence and spending to bolster the economy,
this will have no effect this time round.
Why?
As a nation we are now entering un-chartered waters as the level of
debt per head of population is the highest it has ever been,
therefore, consumers, may not react by increasing their spending in
the way the Bank of England and the Government want them to!
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