Mortgage brokers predict drop in house prices in 2007

The Independent Mortgage Advisors Federation have predicted that the property market bubble will burst next year.

The mortgage brokers group have warned there are warning signs of major slowdown in the market that could lead to a fall in house prices in 2007.

The federation claimed that the latest hikes in interest rates and fuel prices will mean consumers will tighten their belts next year and first-time buyers will be affected, as the amount of money they can borrow will drop.