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UK Interest Rates Expected to Drop
According to the Confederation of British Industry (CBI), the Bank of England will be able to drop UK interest rates to 4.5% by early next year.
A slowing economy and positive long term inflation expectations are leading the CBI to expect an interest rate cut in Q2 and Q4 of 2008, with a further interest rate reduction early in 2009.
The CBI Economic Forecast for March 2008 expects the UK economy to to face a bumpier ride over the next two years due to continued credit market troubles, rising commodity prices and weak demand both at home and abroad.
Bedford-based specialist mortgage broker, Tony Rice of TMP Mortgage Zone, said: "The CBI expectations of three interest rate cuts over the next 12 months will help alleviate some of the fears that many mortgage holders have about long-term affordability. There are still good mortgage deals to be found in today's market place, but people need to act more swiftly than they are perhaps used to as competitive deals are being pulled at short notice and lending criteria can change quickly."
TMP Mortgage Zone provides a whole of market service with access to thousands of products from all the well-known high street and many specialist lenders.
[ 26-03-2008 ]
