Rate cut 'will do little to help'

10 April 2008

The Bank of England has cut interest rates to 5 per cent. The quarter-point cut, the third reduction in borrowing costs in five months, was widely expected. It follows earlier cuts in February and December, and lowers rates to a level last seen at the start of 2007.

Adam Sampson said:

'This interest rate cut will do very little to help the tens of thousands of homeowners facing repossession, rising household bills and falling disposable incomes, especially when lenders are refusing to pass the cut on to borrowers.

'With house prices in sharp decline, mortgage offers being removed and repossessions rising, the Government and lenders must work together to stabalise the housing market, help first time buyers and protect those most vulnerable if we have any hope of avoiding a housing market crash.'