On Thursday, The Bank of England announced that interest rates are to be cut by 0.5%, from 2% to 1.5%. This represents the lowest base rate since the Bank of England was founded in 1694. However the Council of Mortgage Lenders warned that borrowers with standard variable rate mortgages should not expect a cut in Bank rate to be matched by an equivalent reduction in their mortgage rate, as Lenders’ borrowing costs are not determined by the Bank rate alone.

The British Chambers of Commerce has suggested that unemployment figures could rise to ten per cent (3.1 million people) during 2009. For these unfortunates there may be some hope as, on 5^th January, new legislation came into force to help struggling mortgage holders who have lost their jobs. They will receive extra support from new measures outlined by the government last year, which it is hoped will stem the rising number of repossessions in the property market. Waiting periods for the means-tested benefits reduced from 39 to 13 weeks and changes to the terms and conditions of the additional help will mean more people qualify for assistance.

Can you now afford your new home?

Can you now afford to move to a bigger home?

Do you have adequate Income Protection?

What would happen if you lost your job?

Call us on 01752 561981 for a free, no-obligation discussion of your circumstances and we’ll see if we can help you move into that new home and get the right protection.

Further Reading:

http://www.ft.com/home/uk

http://www.telegraph.co.uk

http://www.inthenews.co.uk/money