IMF downgrades UK economy

IMF downgrades UK economy

IMF downgrades UK economy

The UK has become the only European economy included in the IMF's World Economic Report to have its growth projections cut. Released yesterday, the IMF provided forecasts for Germany, France, Italy and Spain out of these the UK's world output growth was the only one to be downgraded. It was revised down from 1.7% growth in 2011 -0.3% growth and 2.3% down to 0% growth in 2012.

"Data through the third quarter of 2010 indicate that virtually all 21 advanced economies experienced a price contraction5 and that five economies have experienced (Denmark, New Zealand, United Kingdom) or are experiencing (Spain, United States) a house price bust. The closest historical episode to the current one was observed in the early 1990s. A key difference from the past, however, is that this is the first time the United States, which accounts for the lion's share of global financial transactions, has experienced a house price bust."

This comprehensive report covers many aspects of the economy, such as house prices, oil prices and inflationary pressures, with all this taken into account but the UK economy looks to be flagging behind other European countries. We hope this will not be the case, but whatever the outcome, mortgages and contractor mortgages, which we provide are still growing in number, so there will be positives to come moving forward, we believe.

A shared ownership mortgage product designed with first time buyers in mind has been launched by Leeds building society. Available up to a 95% borrower share, the deal is on a fixed rate and has maximum loan to value of 75%.

Head of intermediary sales at Leeds, Phil Coombes, commented, saying briefly that the products address the difficulties that first time buyers can face. He went on to say that shared ownership is a good starting point to full home ownership, especially if earning potential increases.

The new product is ideal for those clients who have saved for a deposit but are unable to secure funding with a traditional mortgage product.

Phil coombes has no doubt that this will attract first time buyers who want to get on the housing ladder. Contractors may find this type of product useful, but they may have to wait until a contractor friendly mortgage provider offers a similar deal. Leeds BS has typically not shared our stance on contractors and contractor mortgages.

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