National Association of Estate Agents comments on today’s interest rate cut announcement from the Bank of England

Matthew Gray Scottish Regional Executive, National Association of Estate Agents comments on today’s interest rate cut announcement from the Bank of England:  “Today’s interest rate cut announcement will be welcome news for many current homeowners. However, it represents a body blow for savers and those hoping to get their first foot on the property ladder. Homeowners with outstanding mortgages are currently enjoying some of the lowest fixed rate mortgages seen for a long while, with lenders battling it out to offer the cheapest deal. Cutting interest rates further is likely to improve confidence among those prospective house-buyers who may have put their search on hold, following the Brexit vote in June.

“But for those saving to pay a deposit on a future home, the interest rate cut will be frustrating. The last government focused heavily on supporting first-time buyers (FTBs), with the introduction of schemes such as Help to Buy. Many of those looking for help now will have to wait for initiatives such as the Lifetime ISA to launch, which will then only help those under 40 to save for a home.

“The outcome of the today’s rate cut is simple – we will see aspiring homeowners saving harder for longer, which will no doubt have an impact on the number of first-time buyers succeeding in their dream of acquiring their own home.”