Content begins

Interest rate decision 'provides no solace' for buyers

14 July 2008

Online conveyancing firm has warned that the Bank of England's decision to hold the base rate of interest will not help first-time buyers.

Managing director Duncan Samuel said the decision will "not provide any solace" for those struggling to enter the market.

"Although asking prices are coming down, mortgage rates are at an eight-year high and most prospective buyers are being asked for deposits of at least ten per cent, so things are still very tough, particularly for first-time buyers," he commented.

Mr Samuel added that he expected the rate to be held in the coming months, with the Bank choosing to "wait and see" what effects rising inflation has.

The Bank of England's monetary policy committee voted to maintain the rate at five per cent last Thursday. The last change came in April, when it was cut by 0.25 per cent.

© Adfero Ltd

Send us your comments.



© 2016

MoneyExpert Limited Registered in England. Registered Number 04765843. Registered Office: MoneyExpert Limited, Huxley House, Weyside Park, Catteshall Lane, Godalming, GU7 1XE. Data Protection Licence Number Z8204138. MoneyExpert Limited is authorised and regulated by the Financial Conduct Authority. FCA regulation number 679652.

Terms & Conditions Privacy Policy Cookies Site Map Complaint Handling