David Bexon, Managing Director of SmartNewHomes.com, comments on the Monetary Policy Committee’s (MPC) decision to drop interest rates to 1.5%:
“Today’s decision by the MPC to drop rates to a historic low was widely expected, but it is likely to be greeted with minimal enthusiasm from borrowers, who have been left disappointed by the failure of lenders to pass on the full extent of previous rate cuts.
“Interest rates have come down significantly over the past three months but mortgage finance remains as limited and unaffordable as ever. Going forward in 2009, we need to see Government measures put into practice that will stimulate the banks’ willingness to lend. Interest rate cuts will continue to have little effect until something is done to break the stalemate in the mortgage market.”
See Also: Press Releases (371)
Date Published: 08 January 2009
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