Nick Booker of In2Perspective comments:
“A rise in rates to 4.75% means Mervyn King has just snatched £1.25billion from UK homeowners pockets.
“If rates go above 5% the affordability of the property market will reach a point that it has never reached before without going on to crash. The London property market is now at breaking point and the rest of the country is close behind.
“The property market is about to cross a threshold that has previously only been passed in 1973, 1981 and 1989. All of those years are famous for the property crashes that followed.”
