Property News > World Interest Rate Drop

World Interest Rate Drop

Looking back a few months no one would have predicted that an interest rate cut would be made on a global scale, but that's exactly what happened this week as world financial leaders reacted to the ever deepening crisis in this dramatic move.The rate cut of half of one per cent came on the back of the UK government announcement of a rescue plan for banks and a guarantee to savers in the collapsed Icelandic bank, Icesave. The nationalisation of Northern Rock, the bank debt guarantee, the short term loans that will be made to the banks and a treasury cash injection all add up to an astonishing £500 billion. Part of this sum is classed as investment on which - if the markets recover - the government will earn bonuses, but as every investor knows, losses can be made as easily as gains. Where this leaves the financial markets, the debt of the tax payer and the overall wealth of our country, only time will tell.In the short term, the most pressing need for hard pushed home owners is a cut in their mortgage rates. But will the banks pass the rate cut on to their borrowers at a time when their priority is to attract and retain savers?  Some banks did respond immediately to the Bank of England's rate cut on Wednesday. Lloyds TSB reduced the rate of its standard variable mortgage to 6.5%, to take effect from the beginning of November; no news yet on tracker rates for new customers although existing tracker mortgages also benefit from the cut. Others making similar responses to their standard variable rates included Barclays, Halifax, Natwest, and the Woolwich. At present it looks as if savers might benefit from the banks' need to attract investment, but only time will tell whether savings rates will remain high.Despite these dramatic measures the crisis of confidence is far from over. In normal times, a rate cut of half a per cent might be sufficient to boost house sales, but these are far from normal times. Uncertainty and nervousness are the key factors affecting not only stocks and shares, but people on the high street. That includes those who want to sell or buy property, with only the brave few venturing out into a turbulent market.'For Sale' boards are a common sight but the 'Sold' board is fast becoming an endangered species. If you cannot sell your home but you need to move, give Property Rescue a call. Despite the economic downturn they will give you a guaranteed offer for your property, regardless of its condition or location. Should you accept their valuation and subsequent offer, the sale will go through in a matter of weeks or even days. In a time of uncertainty it's good to know some things don't change!Call Property Rescue for a free, informal chat with no obligation.Looking back a few months no one would have predicted that an interest rate cut would be made on a global scale, but that's exactly what happened this week as world financial leaders reacted to the ever deepening crisis in this dramatic move.The rate cut of half of one per cent came on the back of the UK government announcement of a rescue plan for banks and a guarantee to savers in the collapsed Icelandic bank, Icesave. The nationalisation of Northern Rock, the bank debt guarantee, the short term loans that will be made to the banks and a treasury cash injection all add up to an astonishing £500 billion. Part of this sum is classed as investment on which - if the markets recover - the government will earn bonuses, but as every investor knows, losses can be made as easily as gains. Where this leaves the financial markets, the debt of the tax payer and the overall wealth of our country, only time will tell.In the short term, the most pressing need for hard pushed home owners is a cut in their mortgage rates. But will the banks pass the rate cut on to their borrowers at a time when their priority is to attract and retain savers?  Some banks did respond immediately to the Bank of England's rate cut on Wednesday. Lloyds TSB reduced the rate of its standard variable mortgage to 6.5%, to take effect from the beginning of November; no news yet on tracker rates for new customers although existing tracker mortgages also benefit from the cut. Others making similar responses to their standard variable rates included Barclays, Halifax, Natwest, and the Woolwich. At present it looks as if savers might benefit from the banks' need to attract investment, but only time will tell whether savings rates will remain high.Despite these dramatic measures the crisis of confidence is far from over. In normal times, a rate cut of half a per cent might be sufficient to boost house sales, but these are far from normal times. Uncertainty and nervousness are the key factors affecting not only stocks and shares, but people on the high street. That includes those who want to sell or buy property, with only the brave few venturing out into a turbulent market.'For Sale' boards are a common sight but the 'Sold' board is fast becoming an endangered species. If you cannot sell your home but you need to move, give Property Rescue a call. Despite the economic downturn they will give you a guaranteed offer for your property, regardless of its condition or location. Should you accept their valuation and subsequent offer, the sale will go through in a matter of weeks or even days. In a time of uncertainty it's good to know some things don't change!Call Property Rescue for a free, informal chat with no obligation.

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