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Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

Business groups call for further rate cuts

13/10/2008

Business groups have warned that the half-point cut in the Bank of England’s base rate may not be sufficient to revitalise the economy and ward off a recession, The Times reports.

The Monetary Policy Committee yesterday lowered the base rate to 4.5% following a number of economists’ warnings that failure to do so could result in economic disaster.

But it has emerged that several business groups are not entirely satisfied with the cut. The British Chambers of Commerce (BCC) have said that rates should be cut to at least 4% by the end of the year, with the Institute of Directors (IoD) calling for another half-point cut in the next monthly assessment.

A spokesperson for Debt Advisers Direct commented: “The Bank of England might be wary of a further rate cut due to current high levels of inflation, but there are many ways it would benefit people.

“Holders of tracker mortgages, for example, would see immediate benefits – easing the worries of anyone faced with falling into debt through rising mortgage costs.

“Potentially, it could also encourage banks to offer debt consolidation loans (as well as other loans) more freely, which would aid many people in debt.”

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