Bankruptcies set soar

[iron]

"As the market slows, we expect the numbers falling behind on their mortgage repayments to increase. We forecast this will lead to 43,000 repossessions in 2008."

This week, the Council of Mortgage Lenders predicted the number of repossessions could rocket by 50 per cent next year as borrowers feel the pinch from five interest rate rises since August and a tightening in lending criteria amid the recent credit crunch."



I just read this in the Independant, with the number of re-possessions shooting up this is bound to have a knock on in other parts of the economy, you think it will force the Bank Of England to cut interest rates to keep the economy stable?

[harry]

Interest rates will stay as they are for a while I think, the Bank of England have wanted the housing market to cool for the past few years and so will not be lowering rates to make it easier to rise again

[attagirl2]

Well if they have to cut interest rates in order to keep the economy stable then it has to be the fact is that we cannot allow for instability in todays world as this make us very vulnerable.

[Parin]

Another factor with regards to interest rates is Consumer Price Inflation. This stayed at 1.8% for september (same as august) which is the lowest it has been for a year. This in turn can give the policy makers scope to cut rates if the mess in the credit market is not sorted.