Lenders 'must play ball'

News Category: Management

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Mortgage lenders are duty-bound to pass on savings to landlords brought about by the Bank of England's decisions to cut interest rates, an industry official has said.

According to Simon Gordon, head of communications at the National Landlords Association, the government's bail out of the banking sector was partly based on the requirement that lending to consumers would improve.

The Bank of England yesterday cut interest rates by 1.5 per cent to three per cent, the lowest the base rate has been since 1955.

Mr Gordon said demand for buy-to-let mortgages is high but many landlords are being left frustrated because of a lack of suitable products on the market.

The Bank also announced a 0.5 per cent cut in the base rate last month, but Mr Gordon argued that there has been little evidence so far that lenders have been passing savings on to help buy-to-let mortgage borrowers.

"It's about time lenders started to play ball and pass these latest rate cuts on to landlords," he said.

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