Interest rate decision ‘provides no solace’ for buyers

Online conveyancing firm Convex.net 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

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