Bank may take big risk says National Homebuyers
Added: (Wed Apr 23 2008)
Pressbox (Press Release) -
Things have become so desperate in the housing market that the Bank of England is considering launching drastic new measures in an attempt to revive it – although further failure could lead to a surge in fast property sales.
The BBC is reporting that the Bank of England plans to offer banks the chance to swap their mortgage assets for government bonds.
It is hoped that this will free up the markets, however there is the potential for a big backlash.
The scheme has received criticism from many quarters and should it all go wrong, the UK economy will be in a worse state than it is now.
With this in mind, many people may seek a fast property sale in order to cash in before things potentially get worse.
"I am very concerned that in addition to all the costs associated with Northern Rock, the government is going down the disastrous road of bailing out the banks and leaving the taxpayer with the liabilities," said Liberal Democrat deputy leader Vince Cable.
Fast property sale expert Chris Newman adds, "We speak to tens of thousands of people every month who are already considering a fast property sale as the market is not favourable to them.
"Add the complexities and the uncertainties of the assets for bonds strategy and we fear more and more homeowners will simply want to cash in and achieve a quick house sale before the market potential plumges into undecipherable chaos".
Mr Newman is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK for homeowners who need a quick sale.