UK interest rates cut to record low of 0.25%

mortgage-propertyThe Bank of England have cut interest rates in the UK to their lowest ever level at 0.25%, it is expected that it won’t be having a major impact on the property market but it indicates that borrowing a home is not likely to rise in the near future. It is the first time that the interest rate has been cut for seven years; however, some parts of the market could see an effect.

Adam Challis, Head of residential research at JLL, says: “The reduction will hint the mortgagors that cheap mortgage rates will be around for even longer. This would benefit many would be home movers and the Term Funding Scheme will ensure lenders pass on most of the rate reduction to consumers. The housing market remains to be strong, stable economy and the rate cut will help. Post referendum there has to be greater certainty that will encourage house builders, secure affordability, and supplies.”

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