26 Nov

Base rate cuts due next year, says CML

Base rate cuts due next year, says CML

Prospective buyers will receive a fillip next year, in the form of interest rate cuts, the Council of Mortgage Lenders (CML) predicts.

According to Sarah Robson, press officer for the CML, the prospect of interest rates falling to five per cent by the middle of 2008, will mean mortgage providers will ease lending restrictions - which have been tightened as a result of the credit crunch.

She said: "The general expectation at the moment is that there will be a reduction in interest rates next year.

"That will ease the pressure on some borrowers… It does give some borrowers hope."

"Our October 2008 housing market forecast was for base rates to fall to five per cent by mid 2008," she added.

Interest rates currently stand at 5.75 per cent having been held for the past four months.

The next meeting of the Bank of England's monetary policy committee, which sets interest rates in the UK, is scheduled for December 6th.

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