USA is Close to Hitting it’s Debt Ceiling of $14.3 Trillion !!
President Obama announced on Monday that the USA is close to hitting it’s debt ceiling of $14.3 Trillion. This is not good news for our economic situation in the UK particularly as they say that “When the US sneezes the rest of the world catches a cold”!
There are a couple of huge issues here that can seriously harm the US property market. Firstly, the White house are now forced to apply to the US Congress to increase their debt limit, Obama has warned that if this is refused then that country will default on it’s repayments and this would ignite a new financial crisis. If you are currently looking to sell your home in the UK you may be wondering why does this matter to me? Well, we all know that the current financial crisis that we have recently experienced started in the USA so a second financial crisis certainly won’t help us here.
This news is also of concern for another reason….. Interest Rates. The Chairman of the Federal Reserve Ben Bernanke informed congress that “any delay in increasing the debt limit would result in higher interest rates and could have a dire affect on the US economy. Basically, for those who are already struggling with their mortgage payments or at the least having financial difficulties. Any increase in the interest rates for their mortgages could cause another domino effect and increase home repossessions.
At YouSellQuick we have previously commented that the UK government are cautious to raise our interest rates and we predict that if they do, it will be very slight and interest rates should remain low for a very long time. Look at it this way if interest rates do rise to a level whereby a large majority of the UK are struggling to pay their mortgage payments each month, there would be a national outcry as well as an increase in repossessions.
If you are investigating selling your house at auction now might be a good time. However, we do stress that you should get in touch with us first as we offer a far more favourable solution.
Selling your home quickly doesn’t have to result in a financial hit for yourself. Speak to one of our advisor’s today and ask for our 100% deal.
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