Overseas property...

View information on...

Homes Go Fast

Free News Service

Subcribe to property news

Embed this content on your site

Subscribe in a reader

Property Sales Enquiry Line

For UK Residents call free on:

0800 043 00 96

For visitors out of the UK call:

+44 207 099 33 92

*property references are required

Overseas property news

We are dedicated to bringing the best and most up to date overseas property news to you daily, why not sign up for news alerts by email.

Singapore Private Property Prices Fall

Cityscape Dubai: World�s Largest Real Estate Investment Event

Ziggurat Dubai to be Carbon Neutral

Movie Stars and Celebrities Promote the UAE

The Marquis Estate, St. Lucia

Overseas Property You Tube

Overseas Property

Homes Go Fast

UK Banks quick to take money slow to give

Social Bookmark This!

Bank rate rises are always big news and the latest quarter point rise in interest rates to 5 per cent puts interest rates at their highest level for five years. Inflation figures which are hanging round the 2.5% have seen the Bank of England act to keep inflation under control, with a target rate of 2%.

Consumer debt is enormous

Consumers now hold a record 1.3 trillion pounds in debt, and higher rates are beginning to strain households. Personal bankruptcies touched a record in the third quarter. Abbey National, the U.K.'s second-biggest mortgage lender, is offering homebuyers the chance to borrow five times their salaries.

Rates rises were anticipated

The increase was certainly not a bolt of the blue, economists and financial institutions widely predicted the rise and were clearly ready for it. Commenting on the rise, CML Director General Michael Coogan said: "Financial markets have been anticipating a rise in interest rates since the last one in August, so today's news should come as no surprise to anyone. A quarter point interest rate rise on a typical £120,000 repayment mortgage equates to around an extra £20 per month."

Banks quick to put lending rates up

Rate rises reflected almost instantly to borrowers

Most Banks reflected the rise in their lending rates in hours of the announcement However on the day of the rise only a few Banks passed on better rates to their savers.

National Savings and Investments increased the rate on its direct individual savings account (Isa) by 0.25 percentage points to 5.55 per cent. Marks and Spencer Money also passed on the full rise to its Isa customers. Icesave, the Icelandic bank, the Post Office and The AA also increased interest rates across their variable rate savings accounts by a quarter point.

Propertyfinder.com comments think it’s a London led problem

The rate rise is expected to increase the pressure on homeowners outside London and the South East, where the market has been flat for some time.

Warren Bright, chief executive of Propertyfinder.com, says: “The housing market is being driven by London but people outside the capital may find higher rates much harder to swallow. Aggressive rate rises over a sustained period could destabilise the whole market.”

What of further rates rises?

Oxford Economic Forecasting (OEF) says that growth will slow to 2.3% next year, based on anticipated weaker demand for exports and more reluctance to spend in the shops.

The Bank's monetary policy committee (MPC) is predicting inflation will rise to 2.7 per cent by the end of the year, though it will issue a revised forecast next week in its quarterly inflation report.

"It is likely that inflation will rise further above the target in the near term, but then fall back as energy and import-price inflation abate," the Bank said.

A poll of City economists suggested a 40 per cent chance of another rate rise in February, while analysis of futures trading suggests investors put the chance as high as 60 per cent.

"Borrowers should be warned that financial markets are expecting yet another rate rise by next spring and now is the time to take action to protect themselves," said Michael Coogan, director-general of the Council of Mortgage Lenders.

"Borrowers should be factoring in to their finances the effects of at least one more rate rise, and making sure that they are shielded from any risks this situation might bring."

We Can Distribute Your News

Our news service includes distribution to Google News and is syndicated by RSS to numerous news websites we can distribute your news and press releases all from one place

Overseas property news is updated daily and written by a team of researchers dedicated to providing quality news. Many of the our contacts in the overseas property market provide us with news and a variety of other news sources. Interested in becoming a news source please contact us

Learn more:HomesGoFast.com News Service

The Home of Overseas Property

Buying sell find international property

Foreign Currency Advice	Investment property
Free property finder service	Overseas property developers
Overseas mortgages	Real estate agent services
International property lawyers	Selling property privately

Overseas Property For Sale

Our top overseas property investment hot spots

Spain France Portugal Turkey Bulgaria Cyprus Italy United States Greece Malta Egypt Dubai Brazil Cape Verde Hungary Croatia Thailand Germany Poland Morocco