Rate cuts 'offer limited affect on mortgage deals'

News Category: Industry News

This article was brought to you by Rentman the premium property management system.

The Bank of England's sharp cut in interest rates last month has not resulted in cheaper mortgage deals for homebuyers, a study has suggested.

Reserach by moneysupermarket.com showed that 34 per cent of mortgage lenders have not passed on last month's base rate cut - findings which could indicate that more potential homebuyers might instead opt to rent.

The study also revealed that 30 lenders have failed to alter their policies for standard variable rate customers.

Moneysupermarket.com head of mortgages Louise Cuming said the findings will not help to improve consumer confidence in the mortgage industry.

News of mortgage lenders taking a heavy-handed approach to borrowers in arrears or facing repossession has already damaged people's faith in the market, she added.

Interest rates were cut from five per cent to 4.5 per cent last month and the Bank's monetary policy committee will meet again on Thursday for this month's decision.

Find out more about letting agency software.