Interest Rates Fall To 0.5%!

05/03/2009

The Bank of England’s has made the decision to cut its base rate again to another historical low of 0.5%. Interest rates have now been reduced 6 times since October. This has to be a positive factor as far as the prospects for the housing market are concerned.

This base rate is the lowest rate in the 315 year history of the Bank Of England and is therefore of course the lowest ever experienced by active borrowers.

As always we will need to wait and see to what extent the latest reduction is passed on. The combination of the recent substantial reductions is that the monthly mortgage payments for a good proportion of homeowners will have significantly fallen.

The reduction in mortgage rates and the recapitalisation of the lenders will in our opinion, in time, continue to feed through into improved availability of mortgages. This, together with the reduction in house prices will improve the affordability of a HOME significantly.

We experienced a significant increase in activity in recent months.

We hope that Aitchisons can assist you with your future sale or purchase and please contact your relevant office for a marketing appraisal.

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