Halifax, the UK’s largest mortgage lender, has reported that house prices witnessed an annual fall of 0.9% in April, taking the average value of a house down to £189,027. The bank added that it expects a ‘mid-single-digit’ percentage decrease in 2008. However the decline will not be the same across the UK, with some areas being worst affected.  Wales and the West Midlands are likely to be the most badly affected whilst Scotland is expected to buck the trend and actually see an increase. (more…)

Mysupermarket.co.uk has compared the cost of a basket of essential food items such as bread and milk and found that the price is 15% higher than this time last year. Significant increases were on bread which is up 20% and eggs which has seen a rise of over 50%. (more…)

!65,000% is the staggering annual inflation rate experienced in Zimbabwe.  This is up from around 100,000 as of January 2008. Cash is becoming worthless with prices increasing in the time it takes to get to the shops. That is providing they can afford to purchase anything, or indeed there is anything to purchase. (more…)

The Bank of England (BoE) has today cut interest rates by o.25% to 5%, the third 25 basis point cut since December 2007. The move comes as the Bank looks to mitigate the impact of the credit crunch and the slowndown in the property sector.

Many of the big lenders have already stated that they will pass on the rate cut in full by reducing their standard variable rates (SVR). Whilst this is great news for those with mortgages linked to the SVR or the Bank of England base rate, it does not paint the full picture. (more…)

The credit crunch will be the cause of a slowdown in worldwide economic growth, a forecast by the International Monetary Fund (IMF) has concluded. Latest figures predict gorwth of 3.7% in both 2008 and 2009, a decrease of 1.25% on 2007 rates. (more…)

First Direct, a HSBC company, took the decision to suspend its entire range of mortgage products in a bid to clear the backlog of applications amidst a period of unprecedented demand.

Other banks have today followed suit with Co-op withdrawing all two-year deals and Lehman Brothers removing itself from the UK market all together. (more…)

Lehman Brothers has issued a report that states the UK faces a one in three chance of going in to recession during the next two years. Global financial issues caused by the credit crunch, higher mortgage rates and reduced availablility of mortgage deals will finally lead to a slowdown in consumer spending. Adding up all these factors means the prospect of a recession won’t go away. (more…)