5 Feb

'More must be done' to boost market

'More must be done' to boost market

The Council of Mortgage Lenders (CML) has called for more to be done to ensure a revival of the property market.

Commenting on today's decision by the Bank of England to reduce the base rate to one per cent, the body noted that this alone will not be enough.

Director general of the CML Michael Coogan explained that although borrowers with trackers mortgages will benefit, it is "doubtful" whether significant new lending will be achieved.

"[Rate cuts] have become a more blunt instrument - they are only one of the tools being used to try to help the UK weather the recession," he said, suggesting that affordability is less of a problem than availability for those who remain in employment.

The Building Societies Association had urged the Bank not to cut the rate this month, stating that doing so would discourage savers from making deposits and therefore restrict the flow of money into the market.

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