The UK housing market is in danger of a serious downturn, according to Alan Greenspan, the former chairman of the US Federal Reserve, who also advises Gordon Brown.
Greenspan warned that home owners face difficulties in the months to come, as rising interest rates bring the recent house price boom to a grinding halt. The UK faces growing numbers of repossessions as they struggle to meet rising mortgage payments.
He warns that the UK market is in greater danger from recent economic conditions than the US because it has higher levels of variable rate mortgages those linked to interest rates.
As interest rates continue to rise. He warns that more homeowners will struggle to keep pace with mortgage payments.
According to Greenspan:
“There are going to be some difficulties. You’re already beginning to see the mortgage rates are moving. A lot of the two-year fixes are beginning to unwind, and the teaser rates are going. It’s going to turn, it’s got to turn.”
He also warned that higher levels of inflation are on the way, and that the Bank of England, which has already raised interest rates five times in the past year to their current level of 5.75%, may possibly need to raise them into double figures to keep inflation in check.
There are clear signs that the housing market is slowing after almost a decade of growth, but Greenspan suggests that the UK is still in a good position to deal with any problems.
If rising interest rates are leading to you falling behind on monthly mortgage payments, and you are unable to catch up or keep to an arrangement with your mortgage lender, then don’t let the problem end in repossession of your property.
With Molae Properties solution, you can stop the repossession process by opting for a quick house sale which can go through in time to prevent any repossession going through. You can even remain in your home as Molae Properties offer a sell and rent back scheme.