It was announced on Thursday that the base interest rate would remain at 0.5 per cent as the Bank of England decided to hold the same interest rate for the seventh month in a row.
However despite this, several mortgage lenders decided to make ‘modest’ reductions in their interest rate, mortgage expert John Charcol reported this week.
John Charcol spokesperson Ray Boulger gave his thoughts behind the move:
“Seasonal factors resulted in August being, as usual, a relatively quiet month for mortgages – even by this year’s standards – and it was the first month for a while that some lenders failed to hit their lending targets. This, coupled with lower Libor and swap rates, has resulted in some lenders making modest cuts in their mortgage rates which can only be good news for consumers.”
Mr Boulger went on to add:
“The longer that prices keep rising, the more confidence returns to potential buyers, and the expectation that interest rates will remain low for longer than most people expected prior to last month’s Monetary Policy Committee meeting is good news for the housing market, although our severe economic problems are still acting as a dampener to significant price increases.”
These reductions, slight but consistent rises in house prices and a growing confidence in our economy as the recession seems to be firmly albeit slowly recovering are great boosts to the mortgage market, which is good news for those currently working in the finance industry and in mortgages in particular, as well as those studying for CeMAP or CeFA training and other relevant qualifications.