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Homeowners hope for Budget lift

Published: 07/03/2008
Homeowners hope for Budget lift
Homeowners struggling to make ends meet will be hoping for some measures in next week's Budget to help relieve the pressure they face.

Fuel bills, home insurance premiums, mortgage repayments and food prices are all rising leaving some experiencing severe difficulties.

With the disappointment of yesterday's interest rate decision, which saw the cost of borrowing stay at 5.25 per cent, attention turns to the Budget.

Homeowners will be hoping that Alistair Darling, the chancellor, takes action to reinvigorate the property market, which would help many feel more confident about their financial position.

"We believe the government should provide a boost to the market and support to consumers who will face a difficult period with tens of thousands of people coming off fixed rate loans in the next year," said Richard Farr, director of the Association of Mortgage Intermediaries (AMI).

The credit crunch has made loans of all types more difficult to obtain and more expensive to repay.

There is particular concern about the people coming to the end of fixed rate mortgage deals. The FSA estimates that 1.4 million will be in that situation this year, with the majority facing a hike in repayments.
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