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Interest rate freeze `not helpful to first-time buyers`

11/07/2008

Yesterday the Bank of England`s Monetary Policy Committee (MPC) announced its decision to keep the interest rate at five per cent.

The announcement to maintain the bank rate paid on commercial reserves came at noon.

However, this will "not provide any solace" to first-time home buyers, an expert has said.

Conveyancing firm Convex said the situation was "tough" for people trying to get onto the property ladder.

Duncan Samuel, managing director at Convex, said: "Although asking prices are coming down, mortgage rates are at an eight-year high and most prospective buyers are being asked for deposits of at least ten per cent, so things are still very tough, particularly for first-time buyers."

The MPC are likely to keep interest rates at this level in the coming months to "wait and see" what will happen next in terms of rising inflation and economic difficulties, Mr Samuel predicted.

Convex specialises in conveyancing online, introducing clients to solicitors and conveyancing specialists.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according