Convex.net: Interest rate hold will not benefit first time buyers

www.moneynews.co.uk > General finance > Convex.net: Interest rate hold will not benefit first time buyers

Convex.net: Interest rate hold will not benefit first time buyers

Fri 11th Jul 2008

First-time buyers struggling to get onto the property ladder cannot take "any solace" from the decision to keep interest rates at five per cent, online conveyancing firm Convex.net has said.

Speaking after the monetary policy committee's (MPC) decision to hold the rates, managing director Duncan Samuel said high mortgage rates and deposits are keeping things "very tough".

While asking prices are coming down, he pointed out that mortgage rates are still at an eight-year high and most prospective buyers are being asked for deposits of at least ten per cent.

This means that keeping interest rates static "will not provide any solace for those struggling to enter the property market."

He predicted that interest rates would continue to be held in the coming months, as the Bank of England appears to be taking a "wait and see approach" in light of rising inflation and a worsening economy.

Interest rates were cut by 0.25 per cent to reach five per cent in April.

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase

Related News : Housing market
	Nationwide housing market report 'shows little progress'
	Nationwide housing market report suggests people value rail proximity
	Halifax housing market study 'shows slowdown in price growth'
	Positive news for 'nearly all' UK regions, according to Nationwide housing market document
	Nationwide housing market research 'shows stable picture'
	Firstrung: Abolition of Hips 'has had no impact on housing market'
	CIH: Parents question children's ability to take out a mortgage
	Rightmove: UK house price growth slowing down
	Halifax highlights popularity of coastal properties
	Santander claims HIPs were 'headache' in the housing market