Summary

The financial institutions are expecting interest rates to rise. When and what's expected?

Loans. Mortgages. Credit cards. Interest rate rises around the corner. Page 2

Author: Michael Challiner

Currently, the housing market is buoyant. In the first three

Determining How Much Money You Need to Borrow: How much to borrow is always a key decision. This article gives some good general advice
UK Personal Debt Problems Creating Hardship for Nations Young Adults: Comments on the debt problem for the under 25s
Bad Credit Loans. Much Needed Money in the Most Testing Times: 1 in 3 people in the UK have a bad credit history. This article discusses the problem and the solutions.
Loans For Bad Credit: If you've got a poor credit history, can you borrow and if so how much ? This article explains.
How Your Credit Rating is Determined: Your credit rating is important. This article explains how credit ratings work, their effects and what to do if the score is based on incorrect information.
Personal Finance. Credit Agencies refused access to information about student loans: If you apply for any form of personal credit, the lender will inevitably obtain your credit history from one of the big credit agencies. But these credit records do not include information about student loans. This article explains the background and whether the situation is likely to change.

months of this year the Halifax reported house prices up by 1.6% and the Nationwide reported { life assurance } prices up 2.3%. But these are averages. Increases vary widely depending on where you live. The average asking prices reported by Rightmove, the web site for estate agents, were up 2.7% January to February 2006, 0.9% from February to March and 1.1% March to April to set record high of £205,674. Overall the market rises are being led by `mini-boom' at the upper end.

The problem is that traditionally, sentiment in the housing market is fickle. When we get the first confirmed sign of a rise in interest rates, watch buyers dive for cover. We believe that a quarter percent rise in August followed by another quarter in early autumn, will cause the housing market to stall.

As we all know, forecasts circulating eighteen months ago { life insurance } that the housing market was in for a crash landing, proved wrong - and we're still not expecting prices to fall heavily. But it's the property hot spots that'll bear the brunt of any slow down. They'll be the first to really feel the slow down and plus a dose of realism in respect of asking prices.

At the moment nationally, the average house sale achieves { mortgage rates } around 95% of its asking price. When the forecast mortgage interest rate rises emerge, we'd expect to see this percentage fall to just under 90%. This will undoubtedly put pressure on sellers to trim their asking prices.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS MAY BE SECURED ON YOUR HOME OR OTHER PROPERTY.