Rate cut 'will encourage buyers'

Rate cut 'will encourage buyers'

The decision by the Bank of England's monetary policy committee (MPC) to lower the base rate by 1.5 per cent yesterday will help encourage people to take out mortgages and buy new homes, it has been predicted.

Responding to the news from the MPC, sales and marketing director at homebuilding firm Persimmon West Midlands Anita Williams commented: "Given the squeeze on credit, today's decision to lower the rate to three per cent will certainly boost confidence in the buying public."

She added that this may prompt many to consider this a good time to buy a new home.

The decision to make the biggest base rate cut since 1981 has been broadly welcomed across the industry.

Council of Mortgage Lenders director general Michael Coogan hailed the MPC action as "strong and decisive".

It is now important for the benefits of this to filter through into lower mortgage costs, he added.

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