What is it like to buy a house in UK at the moment?

We know the house price has dropped by 20-30% in 2008. So is it the best opportunity to buy a house now?

The monthly repayments on your prospective home loan have been slashed dramatically in the past few months.

But whether or not you will benefit will depend on whether you have managed to get a loan at all - and that now means saving to put down a very large deposit.

In fact, 60% of all deals now require a deposit of at least 25%.

And 25% of all deals, those with the most attractive interest rates, now require a massive 40% down payment.

If you do not have that sort of cash to hand, you will simply not be given a loan, as lenders ration their scarce funds and protect themselves against potential losses due to the continued slump in house prices.

This is in response to the rate cuts made today.
The Bank of England cuts rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to help the economy.