Property Rescue Blog

Gordon Brown’s budget this week had a few surprises in store, not least the reduction of the basic rate of income tax and the abandonment of the 10% rate. Mr Brown was keen to point out that his budget was fiscally neutral (in other words it didn’t raise any money, nor did it give any away) but focused on simplification and redistribution of taxes and allowances in a more equitable way. Whether or not you agree with that is, of course, entirely dependent upon your circumstances.

In a country where 70% of us are property owner-occupiers and a good proportion of the remaining 30% aspire to get their feet on the housing ladder, it’s unsurprising that interest rate fluctuations are of keen interest to a great many. Mr Brown has made it known that he is keen to see long term fixed interest rates set at the beginning of a mortgage rather than the 2, 3 or 5 year deals common in the market today, but as yet the market is slow to take up his prompt.

The Retail Price Index (RPI) is at its highest level since 1991 and the Bank of England is likely to want to do something to curb rising levels of spend. Even with Mr Brown’s ‘equitable budget’, analysts are predicting that UK interest rates are likely to rise another quarter of one per cent in the next month or two, putting further pressure on home owners.

Property Rescue offers a solution to those struggling to meet repayments on their mortgage or other unsecured loans. If you are facing financial difficulties, talk to Property Rescue to find out how the buy and rent-back option can be the answer to ever-spiralling mortgage payments.