(1888PressRelease)
May 27, 2007 - According to Cru Investment Management's Jon Maguire, uncomfortable comparisons can be made between today's market conditions and those of 1989, when Britain was on the brink of a housing market crash.
What's more, he predicted that interest rates would rise to at least six per cent by the end of 2007, which would act to heap further misery on already-overstretched homeowners.
"Interest rates could go up to six per cent by the end of the year," Mr Maguire told the Times.
"It wouldn't surprise me if the housing market crashed. The situation is very similar to 1989 and terms such as negative equity may well revisit the UK with a vengeance."
Interest rates have risen four times in the last year, with 0.25 per cent hikes recorded in each of August, November, January and May.
The rate of interest currently stands at 5.5 per cent.
National Homebuyers, the UK's quick sale property company echos Cru Investments' predictions. Julian King, Director of the company that receives thousands of enquiries from people needing to sell their house quickly every month says "We drew the comparison last year and predicted the continued hikes.
"Seeing the effect of interest rate rises in the number of people who need to sell their house quickly, without the delays and uncertainty of marketing their property on the open market leads us to predict that interest rates will rise to over 7%.
For more information about how to sell your property before your interest rate becomes unmanageable, please click on www.nationalhomebuyers.co.uk or call 0870 979 8118.
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