Last week's decision by the monetary policy committee to cut the base rate to 5.5 per cent may not mean 2008 will be an easier year for mortgage-holders, according to the Council of Mortgage Lenders (CML).

Sue Anderson, head of external affairs at the organisation, commented that although the decision has helped to restore consumer faith in the industry, it may not lead to an increase in credit availability.

"It depends who you are and what situation you are in," she said. "If you are a mainstream borrower you are probably looking at rates that are not going to get worse and may in fact improve."

However, for those with a bad credit history and looking for follow-on deals, it may be harder to find a mortgage, she added, explaining that many banks have tightened credit availability.

Prior to Thursday's decision, the monetary policy committee had increased the base rate five consecutive times since August 2005.


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