Wednesday, December 5, 2007
This is not a good reason to cut BASE rate… by the way, it will not make the situation any better for borrowers
"It would now appear that some of Britain's mortgage lenders, particularly in speculative areas such as buy-to-let, may have been as foolish as the Americans and made sizeable loans to people who cannot afford to make the interest rate repayments. Matters have been made worse now that some two million or so cut-price, fixed-rate mortgage deals are coming to an end. The risk must be that, as in America, residential properties will be dumped on the market, dragging down values and discouraging house builders."