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Dark days ahead for housing market warns Lib Dems

The Liberal Democrats have warned that any future rate rises will lead to a national housing crisis.

Vince Cable MP, shadow chancellor for the Liberal Democrats, says: “Many families are now struggling to meet interest payments as house prices and interest rates continue to rise. The ominous warning today from Mervyn King suggests there is at least one more rise in interest rates to come.

”Gordon Brown has been extraordinarily lucky so far, but a combination of an economic slowdown and higher interest rates could spell disaster for large numbers of heavily indebted families.”

Cable warns that the Bank of England and the mortgage lenders are playing a dangerous game when it comes to pushing rates and fees.

He says: “If interest rates rise further, many home owners will simply not be able to pay. The figures over the last two years show that although we are not yet at the crisis levels of the early 1990s, the number of repossessions and repossession orders is soaring.

“A generation of young people are now finding it impossible to get onto the housing ladder except by borrowing at levels which are ludicrous and dangerous. Unfortunately some mortgage lenders are inviting disaster by doing this.”


Out of date deals slammed

A broker has slammed Tri-gold for sourcing out of date products.Two weeks ago, Rodney Wadham, proprietor of Wadham Financial Solutions, tried to source a mortgage from the system, only to find that the top three matches had already been pulled.He says: “I sourced a mortgage with Nottingham on a five-year fixed rate of 5.64%. But […] warns of pitfalls of ‘mates mortgages’ is urging consumers to check their credit histories and those of their co-buyers before entering into a so-called ‘mates mortgage’ deal. According to the British Bankers’ Association and the Building Societies Association, around 60 banks and building societies are now prepared to lend to up to four applicants for a single property. As a […]

Cheshire sues Dunlop Haywards over commercial fraud claims

The Cheshire is suing chartered surveyors, Dunlop Haywards, for £9m following an investigation into alleged fraud by the company’s former head of valuations Ian McGarry.The writ follows a £50,000 investigation into “extreme inconsistencies” in a commercial valuation made by Ian McGarry – nicknamed “Flash McGarry” – who was arrested and released by police last March.An […]

Networks can help in a flat market

It is becoming apparent that a combination of high consumer debt and rising interest rates are leading to a flatter housing market.


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