Low interest rate ‘ensures sales aren’t forced’
The current record low interest rate of 0.5 per cent - set by the Bank of England's monetary policy committee in March and held for the last two months - is one of the reasons there are not vast numbers of people in the UK having to sell their homes.
During the last property recession, the base rate was over 12 per cent and the situation was very different, according to Lisa Walker, marketing director for property website Fish4Homes.co.uk.
"I firmly believe that because interest rates are so low, many people are not being pushed into a forced sale position," Ms Walker explained.
As a result, she added, there are fewer homeowners having to consider turning to the rental market.
The marketing director also suggested that in the early 1990s - the period when there was a similar property crash to the one being witnessed now - "many cash-strapped homeowners had no alternative than to sell their homes to avoid being repossessed".
Mortgages for professionals is a whole-of-market broker providing expert mortgage advice to high earning professionals such as pharmacists, engineers and doctors.
During the last property recession, the base rate was over 12 per cent and the situation was very different, according to Lisa Walker, marketing director for property website Fish4Homes.co.uk.
"I firmly believe that because interest rates are so low, many people are not being pushed into a forced sale position," Ms Walker explained.
As a result, she added, there are fewer homeowners having to consider turning to the rental market.
The marketing director also suggested that in the early 1990s - the period when there was a similar property crash to the one being witnessed now - "many cash-strapped homeowners had no alternative than to sell their homes to avoid being repossessed".
Mortgages for professionals is a whole-of-market broker providing expert mortgage advice to high earning professionals such as pharmacists, engineers and doctors.
