Bank 'has not come to aid of property market'
News Category: Industry News
Published: 09-May-2008
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Those struggling to get themselves onto the UK property ladder have not been helped by the Bank of England's latest base rate decision.
That is according to Duncan Samuel, managing director of online property conveyancers Convex.net, who said that measures needed to be taken in order to improve conditions for borrowers in the increasingly tough mortgage market.
The Bank's Monetary Policy Committee (MPC) announced yesterday (Thursday, May 8th) that it has decided to hold interest rates at five per cent this month.
Mr Samuel commented: "[The] decision to hold the interest rate at five per cent has to be disappointing news for a property market already in danger of stalling.
"The lack of activity from lenders is undoubtedly having an adverse effect, so it is clear that very soon the Bank of England will need to do something to bring the Libor rate down to free up mortgage funds."
The MPC reduced interest rates from 5.25 per cent to five per cent last month.
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