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BSA welcomes cut in BOE lending rate
8 October 2008 14:17
The Bank of England's 0.5 per cent cut in interest rates has been welcomed by the Building Societies Association (BSA).
A decrease in the base rate was announced earlier this afternoon (October 8th) - a day ahead of planned - in a bid to kick-start the UK's ailing economy.
With several lenders already following the Bank's decision to reduce interest rates, the availability of mortgages is set to experience a substantial boost.
Adrian Coles, director general of the BSA, said that the reduction in the bank rate would provide some support to the housing market because it will help those borrowers on variable rates.
However, he warned, new fixed rate deals and those linked to money market rates would not necessarily see a decrease because they were determined by other factors.
Concerns that 95 per cent mortgages had all but disappeared emerged earlier this week, but following today's news, they could be set for a resurgence.
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