Mortgage costs drop following Bank move |
11 2008 |
| High street mortgage lenders are increasingly falling into line over the 1.5 per cent drop in interest rates announced by the Bank of England last week. Initially there were signs that mortgage lenders were resisting the opportunity to pass on savings to consumers but strong pressure from the government has led to many now lowering their rates. David Kuo, head of personal finance at finance website Fool.co.uk, said: "The central bank must be seen to be fulfilling the expectations of consumers. "This is vital if interest rate cuts are to provide consumers with instant gratification." There is speculation that the cuts to three per cent will mean a confidence boost throughout the housing market but with 2009 bringing pessimism it is likely the demand for rental property will remain high, as it has been in 2008 according to Your Move figures.  |
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