(1888PressRelease)
May 30, 2007 - Although Nationwide's envisaged figure is significantly lower than the 10.9 per cent annual rate of house price inflation reported by the Halifax house price index recently - suggesting the market is set to cool - Capital Economics' Vicky Redwood, for instance, believes the Bank of England will still decide to take action to ensure house price growth is sufficiently quelled.
Unfortunately, Ms Redwood concedes, this will have an adverse impact on a number of households.
"The higher rates go the more households will find it impossible to repay their debts," she told the Daily Mail.
Numerous reports have divulged that the expected rate rise is likely to prompt a raft of repossessions as consumers struggle to cope with higher mortgage costs.
Those in - or predicting - financial difficulty could consider selling their properties to National Homebuyers and subsequently renting them back.
The fast purchase property firm guarantees to make an offer on any property surveyed, allowing the vendor to sell immediately or arrange to release the equity in the property and rent back their home.
Director Chris Newman says: "Sell and rent back is becoming more and more popular with homeowners who need access to the cash tied-up in their bricks and mortar.
"Our solution is easier to understand than an equity release scheme, but the benefits are the same: releasing cash in your property to allow you to pay off debts and live the lifestyle you want. No moving is necessary."
Further information about the National Homebuyers' sell and rent back solution can be found
at www.nationalhomebuyers.co.uk/sellandrentback.html
or by calling 0870 979 8118.
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