Peter Rollings commenting on the Bank of Englands decision to cut interest rates this morning
Thu 05 Feb 2009
This is a double edged sword lowering the base rate puts more pressure on lenders margins, making it tougher for them to lend. A move like this must go hand in hand with action from the government to help banks boost their lending.
But the silver lining is that the lower the interest rate, the more sense it makes for people to buy property, not rent. Weve already seen the impact of the Banks last cut - Marsh & Parsons registered more than 1,000 new buyers in January alone. Renters are demanding six month break clauses in their leases so they can get out quickly to buy at the floor of the market the number of buyers with secure mortgage finance was noticeably higher last month.