CML Says Mortgages Will Get Cheaper
April 27th, 2008 by Len
Following the Chancellor of the Exchequer’s meeting yesterday with the Housing Minister, the Council of Mortgage Lenders (CML) released a joint press release saying that it believes cheaper mortgages are on the way shortly.
Now that the Bank of England has agreed its £50 billion bond scheme to help fund the banks mortgage liquidity, the CML believes this will help increase confidence and stabilise the market. The organisation also agreed that more should be done to help those struggling with their mortgage repayments to try and avoid a huge increase in repossessions.
The Chancellor, Alistair Darling, wants lenders to make sure they pass on any interest rate cuts by the Bank of England and this week, Abbey National was the first to do so, cutting 0.1 percent off their tracker and variable rates.
I have to say, I think cutting 0.1 percent off their interest rates was in no way sufficient considering the Bank of England recently cut interest rates by 0.25 percent. Are we meant to be impressed by this little gesture?
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