(PRWEB) July 29, 2005
Speculation is rising that the Bank of England will cut interest rates next month according to City Index today. This will have interesting effects on the number of people involved in property-related pensions.
This speculation on a rate drop was supported by the fact that the UK Monetary Committee left the 4.75% current rate as it is. Several leading building societies then followed by cutting their fixed rate mortgage rates. Nationwide announced on Tuesday that it has cut its range of fixed-rate mortgage deals by 0.1 to 0.3 percentage points, and Chelsea Building Society also cut its fixed-rate deals on Tuesday, by 0.34 percentage points. All very positive news for homeowners who have seen the market stagnate over past months as rates have risen.
This is good news for home owners, and even better news for property investors, particularly those looking to use property as a replacement for their pensions. Combined with the introduction of the new property SIPP regulations later this year, this will mean traditional pension companies will lose still more investors.
Simon Jones, director at Savills Private Finance, financial adviser, says: ÂAnyone concerned about rate hikes should think about fixing their mortgage now but if you can hold out a little longer then you could benefit from further rate cuts. There are competitive discount and tracker mortgage rates around at the moment that would allow your mortgage to follow the rate downwards if thatÂs where you think it will go.Â
This will fuel interest in the more creative property investment schemes that are becoming widespread at the moment, as more people see property investments as a viable alternative to the traditional pension contribution.
Those of the media interested in finding out more about such schemes should contact the author Geoff Morris at or view further information at http://www.horizon-homesellers.com/property/freedom.html