Building Societies Association (BSA) comments on cut in interest rates

Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association (BSA), comments on the Bank of England cut in interest rates to 5%.

“Today’s cut in Bank Rate marks a turning point in what has been a very difficult two and half years. 

“The news will be welcomed by many homeowners and aspiring first-time homebuyers.

“Whilst a 0.25% cut in the rate, to 5.00%, will not have a significant impact on the overall cost of mortgage payments, it is likely to boost to consumer confidence and lead to an increase in housing market activity. 

“Anyone who is concerned that they may experience financial difficulties in making their mortgage payments in the coming months, should contact their lender as soon as possible, preferably before missing any payments.

“They have a range of practical, tailored support available to anyone who may be struggling.

“Savers may be a little disappointed at the Bank Rate cut.

“However, with inflation at 2%, most best-buy savings rates, even with a cut, are likely to remain higher than inflation, meaning most savers will continue to enjoy real returns on their savings.” 

Kindly shared by The Building Societies Association (BSA)