20
Dec
Rate cut will 'comfort homeowners in 2008'
The Bank of England's interest rate cut is just the fillip
borrowers and first time buyers were seeking amid uncertainty in
financial markets, it has been claimed.
This week it was revealed the Bank's decision to cut rates to 5.5
per cent had been endorsed unanimously by its monetary policy
committee (MPC).
According to Stuart Law, chief executive of Assetz, this revelation
suggests that the Bank is fully aware of the impact of the credit
crunch on borrowers and should give them more confidence going into
2008.
He said: "It is good to see, from this unanimous verdict, the MPC
is finally reacting to the very clear and present dangers of the
credit crunch, as opposed to the far more vague concerns in
relation to inflation."
Mr Law added that the cut could also represent beleaguered first
time buyers with a long overdue break.
"First time buyers, while likely to be nervous from recent press
comment, have a golden opportunity over the next few months to pick
up a bargain from a developer or vendor looking to sell quickly,"
he explained.
"I would recommend buyers move quickly to take advantage of
reducing interest rates over coming months while getting a great
property price."
