CML calls for further rate cuts

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CML calls for further rate cuts

Thu 10th Apr 2008

Borrowers on tracker mortgages will benefit from today's decision by the Bank of England to cut interest rates from 5.25 to five per cent, according to the Council of Mortgage Lenders (CML).

However, Michael Coogan, director of the organisation, urged the bank to make further base rate cuts and provide more widely available liquidity in order to restore consumer confidence and create a better market for lenders to operate in.

He stated that in the current volatile market conditions, the Bank base rate cannot function as a suitable guide to the "cost or availability of funds to lenders".

"We would like to see another base rate cut next month partnered with more liquidity auctions, of higher amounts, over longer terms, and available to a wider range of institutions," Mr Coogan said.

The Intermediary Mortgage Lenders Association has also called for further rates cuts to try and bring down money market rates and restore consumer confidence.

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