The dramatic reductions – from 5% last October – have been good news for most borrowers with tracker mortgages as these should automatically fall in line with the reduction announced today. The news comes at a time where many Wight Agents member agents have reported increased levels of sales as confidence starts to grow in the housing market.
Nick Julian - Director of The Wright Estate Agency agrees that activity levels are substantially better than the end of 2008: “We are seeing many buyers wanting to bite now and believing that property is a safer bet than stocks and shares and in the long term will be a better growth vehicle than savings accounts which currently are offering very little to customers.
“We have experienced both in South Wight and West Wight good interest from mid range second home buyers with substantial amounts of cash wanting to purchase second homes for their future enjoyment rather than putting off the decision. These areas traditionally wouldn't liven up until the spring, yet appear to be active now. Further Government pressure on the mortgage market to open its doors to more competitive lending now we have seen this record-breaking cut in the base rate will hopefully increase demand too.”The Bank's rate reduction and decision to launch a strategy of quantitative easing were widely expected and encouraged by business. Most of the pool of new cash, which will be pumped into the economy over the next three months, will be used to purchase Government debt.
