With the credit crunch now set to develop into a full blown recession with news from both the Prime Minster and the bank of England confirming this, I think both are giving in to the fact it's a forgone conclusion. However it's not all bad news with the Bank of England monetary policy committee (MPC) set to cut interest rates by 0.5 percent this month. This news surely must bring some relief to homeowners who are having a very tough time as of late.
The committee arrived at this decision a day earlier as planned. This decision echoes moves by banks around the world. With this cut in interest rates you can't help but wonder if this is setting a standard for more cuts in the future months as inflation starts to fall. This may not be a good announcement for your savings but a well needed move to help stabilise the economy.
If the government interventions work in regards to the loans being available to banks then the situation with the property market is sure to start to recover. This means the banks will start to borrow from each other again thus helping mortgages. If the money is available to you this is a good time to buy a house as the value of property can really only rise and if you can hold on in there then this can prove to a good investment in the future.
It was also suggested that Britain has never come as near to meltdown since World War 1. This illustrates how serious this problem has become not helped by the press as their negative attitude on occasion only fuels concerns by the general public.
If you're looking to rent at the moment I found this great website for flats to rent in Edinburgh . They have a wide selection of flats to rent and have property all over the country including flats to rent in Glasgow.
The thing to remember is that this won't last forever by 2010 it is said we will be out of this and on the road to recovery; we just need to hang in there. This is sure to be very difficult for many families but I'm sure interest rate cuts will help property owners with their mortgage repayments. We are now in the run up to Christmas and I'm sure this will have a knock on effect with retailers as people try to make savings by spending less.