Today the BoE cut interest rates today to 4.75%.
Chancellor Rachel Reeves welcomes the cut, however underlines- “under no illusion about the scale of the challenge facing households”.
The Bank of England Govenor says that it is “likely that interest rates will continue to fall gradually from here”.
Commenting on the BoE decision to cut interest rates, Arjan Verbeek, CEO and Founder of Perenna said:
“If Rachel Reeves deployed a fiscal bazooka in the Budget, the Bank of England has continued to draw on its own arsenal to drive down borrowing costs and support growth.
“Lower rates alone don’t buy houses, so while this is change will be welcomed, it’s not going to move the dial materially for frustrated first timers. In reality, rate changes alone won’t tackle the affordability crisis we have in the UK. Plenty of potential homeowners already pay a lot more in rent than they would if they could secure a mortgage on current rates.
“The issues stem from their ability to secure finance in the first place. The restrictions placed on lenders via the loan-to-income cap only compound this problem, preventing individuals and families into homeownership who could afford it.
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