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Held interest rates will not facilitate home-buying
10/07/2008 17:36:00
The interest rate hold will "not provide any solace" for people trying to get on the property ladder in the UK, according to a financial expert.
Following the Bank of England's monetary policy committee's (MPC's) decision today (June 10th) to maintain interest rates at five per cent, the online conveyancing firm Convex.net has commented on how first-time buyers will be affected.
Things are still very "tough" for this group, said managing director of the company, Duncan Samuel.
"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," inside quote marks he explained.
He expects the MPC to hold the interest rate over the next few months.
In related news, the National Housing Federation recently said it is "absolutely vital" to create more social accommodation for the 1.6 million households currently on council waiting lists who cannot afford to buy property despite price drops.
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