Peter Rollings commenting on the Bank of England’s decision to cut interest rates this morning
“Never look a gift-horse in the mouth, but the vast majority homeowners will never feel the benefit of this cut. Banks simply aren’t passing these cuts on. While it will have a positive impact on sentiment, vital at the moment, interest rates mean very little if you don’t have a large deposit – in London, house prices are still high enough that a 25% deposit is a fortune for a first time buyer.
“The base rate cut is a further step in the right direction, but if we’re to see even a mild improvement in the number of people able to afford to move home – the government must start acting to thaw the mortgage freeze. Banks can’t lend because they have no money to lend – the government promised us action in November. The action we’ve seen to date is simply not enough.”
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