Hopes Dashed For Struggling Home Owners
A review of the current mortgage market has confirmed the recent trend of rising mortgage rates and little scope for significant falls in the short term. Fixed rate mortgage rates are currently higher than they have been since 1997 and there are even concerns that they may move higher in the short term.
At a time when each and every family across the UK is struggling to meet the growing cost of living, higher taxes and employment uncertainty it seems that the mortgage sector is set to add to the growing woes. As mentioned in some earlier articles on this site it seems as though the government played the £50 billion asset exchange a little too early in the day and missed the prime time to make the greatest impact.
As mortgage rates move higher, the number of property transactions is set to move lower placing more and more pressure on property prices. This in turn will push more and more home owners into financial difficulties and could set the economy on a downward spiral. While the fall in the UK economy has been marked over the last 6 months there have been a number of false dawns when some thought the worst was over. Time will tell what is in store for the UK economy...........
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