Lenders 'begin passing on interest rate cut'
News Category: Marketing
Published: 10-Nov-2008
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Landlords and letting agents could benefit from lower mortgage rates as a number of large lenders have announced plans to pass on the latest interest rate cut made by the Bank of England.
The Halifax, Nationwide, NatWest, Royal Bank of Scotland and Scottish Widows have all said they will pass on the full 1.5 per cent cut to their standard variable rate customers.
The move could also help landlords who are looking to snap up new property at bargain prices after house price falls in the UK over the last 12 months, because rate cuts and improved lending within the banking sector might improve liquidity and confidence, resulting in new and more affordable mortgage products being brought onto the market.
Lenders need to pass on interest rate cuts to consumers to help improve confidence in the housing market, according to National Association of Estate Agents past president Melfyn Williams.
He said: "Reducing the rate will help send a clear signal to the market and allow fluidity of mortgages to be loosened - giving the market and the thousands of house hunters out there the positive impetus they need."
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