What an interesting start to 2009 would it be if interest rates by the middle of February were down to 1%?
It would certainly be a great start to the year for property owners who were on a discounted rate!
Well, 12 months ago this may well have been a mere fantasy but today it is looking increasingly realistic…
Only yesterday I remember looking at the news headlines and it was serious doom and gloom (not that we’ve been short of it). The chancellor was saying we were already in a recession, more companies were laying people off and unemployment had topped 1.8 million.
On top of that, BT have just announced today that they will also be laying off 10,000 people.
So what does this mean?
Well, according to some financial analysts they now expect another 1% base rate reduction in December followed by a 0.5% reduction in January and February also.
If that happens then the base rate will officially be down to a mere 1%?
With the LIBOR rate continuing to drop, next year could well be the time when we start to get some affordable mortgage products back on the market!
Let’s hope so anyway :-).
