Repossessions to increase by 2008

08/11/2007

The Monetary Policy Commission's decision to set back Bank rate at 5.75% still remains unknown; many market players claimed a slash is imperative before 2008.

Managing director of SmartNewHomes.com, David Bexon commented: "Today’s decision to hold interest rates is an extremely short-sighted one at a time when confidence in the housing market is at an all-time low.

"Repossessions are set to rise next year and home owners who have stretched their finances to buy at high prices on low, short term mortgages, will suffer. There is still time next month for the MPC to reverse this decision and I urge them to do so.”

Managing director of Hamptons International Mortgages, Jonathan Cornell added his speech: "As the effects of the credit crunch continue to play out and reverberate around the market, the MPC's decision to leave the base rate well alone seems prudent. Several industry reports over the past weeks have reflected sustained reduction in house price growth across the country which prompted some analysts to predict a rate reduction this month."

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