20 Dec

Rate cut will 'comfort homeowners in 2008'

Rate cut will 'comfort homeowners in 2008'

The Bank of England's interest rate cut is just the fillip borrowers and first time buyers were seeking amid uncertainty in financial markets, it has been claimed.

This week it was revealed the Bank's decision to cut rates to 5.5 per cent had been endorsed unanimously by its monetary policy committee (MPC).

According to Stuart Law, chief executive of Assetz, this revelation suggests that the Bank is fully aware of the impact of the credit crunch on borrowers and should give them more confidence going into 2008.

He said: "It is good to see, from this unanimous verdict, the MPC is finally reacting to the very clear and present dangers of the credit crunch, as opposed to the far more vague concerns in relation to inflation."

Mr Law added that the cut could also represent beleaguered first time buyers with a long overdue break.

"First time buyers, while likely to be nervous from recent press comment, have a golden opportunity over the next few months to pick up a bargain from a developer or vendor looking to sell quickly," he explained.

"I would recommend buyers move quickly to take advantage of reducing interest rates over coming months while getting a great property price."

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