Moneyspider in the News
09/01/2008
What slump? House prices up 5.2%
Daily Express
Many City economists still expect the
Bank to cut interest rates by 0.25 per cent for the second month in
succession to 5.25 per cent to ease the pressure on homeowners.
Howard Archer, chief UK and European
economist at analysts Global Insight, said: 'Halifax hints that house
prices may prove relatively resilient over the coming months. Thereby
easing concerns that a sharp correction in house prices is looming.
But we still believe there is a strong case for the Bank to cut rates
to 5.25 per cent as soon as Thursday and by February at the latest.'
Tony Ahearne, of financial ratings online
service Moneyspider.com, said: 'These figures showing a £2,500
rise in the cost of an average home last month is bound to put a dampener
on the prospects of a rate cut. But millions of home owners will be
desperately disappointed if the Bank of England does not cut the base
rate.'
A homeowner with a £200,000 interest
only mortgage would see their monthly payments drop by £41.67 if the
predicted rate cut is announced.
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