() August 29, 2008 -- Fact:Interest rates have remained the same since April 2008 and experts are nowpredicting a decrease in 2009.



An end might be in sight to the 'credit crunch' and economic downturn thathas dominated the news for much of 2008 and depressed the housing market withits corresponding effect on borrowing.

Talk of a recession has encouraged the Bank to England to maintain its baseinterest rate at a level that has kept overall interests rates high - good forinvestors but not so good for borrowers.

But a growing mood of optimism is now being detected, with a number ofexperts saying that Britain should follow the American example and dropinterest rates to stimulate both the housing market and economy generally.

The result, says Greenhill Finance, is that lenders are starting to getbehind the fact that interest rate rises are behind us and are looking for acompetitive edge by cutting interest rates on loans and remortgages.

Among a number of leading UK experts confidently predicting a return tolower interest rates in 2009 is the British Chambers of Commerce (BCC) andGreenhill Finance, one of Britain's leading finance brokers, is optimistic thatthe days of more affordable loans and remortgages are on the way back.

BCC forecast that interest rates will be cut over the next six months tohelp counter the effects of the credit crunch, while two other independentfinancial commentators also predict an easing of the economic downturn in 2009.

BCC economic adviser David Kern was quoted on Aug 18 as saying that UK bankrate 'will be cut to 4.75% in quarter four (Oct-Dec) 2008, followed by anadditional cut to 4.50% in quarter one (Jan-Mar) 2009.'

Property expert and presenter of Channel 5's 'How to Be a PropertyDeveloper' Gary McCausland also believes a cut is due.

'A positive rate cut of at least one per cent would go a long way tounderpin the UK's struggling economy', he said.

More recently, prominent analyst and government adviser Tim Congdon, who setup Lombard Street Research, too confidently forecast that oil prices will comedown next year.

This, he said, could produce an inflation figure of less than one per centby autumn 2009, leading to a significant decrease in interest rates.

Greenhill Finance has been prominent among those who have poured scorn ontalk of recession, pointing out that the majority of homeowners in the UK arestill in a very healthy financial situation, with their homes retaining onaverage an equity value in excess of ?160,000.

Senior Greenhill advisor David Reid said: 'For the most part homeowners havedone very well from property, and many may now prefer to invest by making theirhomes nicer through remortgaging or taking our secured loans.'

Greenhill Finance can help select the best secured loan with money in thebank within 21 days. For more information call 0800 916 4148 or visit .

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Interest Rate Cuts 2008:

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