6
Dec
Interest rates cut to 5.5%
The Bank of England's monetary policy committee (mpc) has cut
interest rates by 0.25 per cent, handing a fillip to struggling
homeowners.
This brings the rate down from 5.75 per cent to 5.5 per cent and
comes amid mounting pressure from consumers, analysts and
economists alike.
The cut is the first since August 2005, and has been interpreted as
the bank acting to arrest the current economic slowdown.
Nici Audhlam, head of mortgages at Abbey, welcomed the cut on the
grounds that it will bring respite to existing property owners as
well as assisting first time buyers.
He said: "The Bank of England's decision to cut the base rate
reflects some warning signs of a slowing economy, and in particular
the drop in activity that we have seen in the housing market in
recent weeks.
"The rate cut will be a welcome start to 2008, providing relief for
house buyers and re-mortgagers as it eases the pressure on monthly
mortgage payments. For those trying to get onto the property
ladder, the prospect of buying a first home at last looks a little
more affordable."
