Stephen Hatfield from Hawkins Estate Agents in Rugby comments on the Bank of England’s Monetary Policy Committee’s decision to retain the base rate of interest at 0.5% for the 50th month.
“Last month we were waiting the first quarter gross domestic product results for the UK economy and the outcome was positive with the UK posting a 0.3% rise in GDP following the fourth quarter 2012 decline. This meant that the UK had officially avoided what was potentially a ‘triple dip recession’.
Mr Hatfield added that her was unsurprised that the Bank of England’s monetary policy committee voted to refrain from further monetary stimulus keeping it unchanged at £375bn. It also decided to maintain the base rate of interest at 0.5% this month – marking the 50th month that the bank rate has remained at an all-time low.
Mr Hatfield: “Following the recent budget announcements in relation to the Government’s Funding for Lending scheme, it has now been confirmed that the scheme will be extended at least until 2015. One of the objectives of this policy was to reduce the cost of borrowing for Banks and Building Societies, and thereby offer mortgage borrowers and small and medium sized enterprises access to cheaper mortgages and loans for businesses.
“In addition to reducing the cost of mortgage products, lenders have continued to steadily increase overall product numbers, with the number of mortgage products typically available to intermediaries rising once again in April to 6,742, a further increase of 1% over March.”
For more information telephone Hawkins, Regent Street, on (01788) 541045.