11 Nov

Mortgage rate cut hailed as "excellent" news

Mortgage rate cut hailed as "excellent" news

The base rate cut announced by the Bank of England last week is "excellent" news that will help bring about a recovery in the property market, it has been stated.

National sales and marketing director of housebuilder Miller Homes Sue Warwick predicted that the decision of the biggest lenders to pass on the cut will prompt the rest of the market to follow suit.

"The drop will ease the fears of high monthly repayments on a new mortgage and give househunters a much-needed boost," she commented.

Ms Warwick added that because the volume of new homes built this year has been well below the government's targets, a lack of supply will gradually start to make an impact and this will "underpin" the market.

As a result, she concluded, it will not be long before some of the special offers being made now start to disappear, meaning that the present time may offer a finite window of opportunity for buyers to pick up a good deal.

Optimism about the sector was also found in a recent survey of first-time buyers by conveyancing and research firm OneSearchDirect.

The study discovered that 88 per cent of respondents expect the property market to bounce back within a year.

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