As I discussed back in December last year when rates were slashed to 2%, the Bank of England needed to keep something healthy up its sleeve if all these rate cuts did not do sufficient to help our ecenomy.
Well, what has happened since then (as it’s been a while since you have seen any input to this blog from SPF Financial)? Well, we had rates go closer to zero at the turn of the year, with some stability at 0.5% from March, where it has remained since. We have heard of £75bn being promised to be injected into the economy which is to help free up lenders coffers and get them lending again. Given this is expected to have been used up by June, now we have been promised another £50bn!
So there are the facts, what are you views on how this is helping? I speak to lots of property professionals, and mortgage lenders alike who are very positive that we could be seeing our housing market take a few months ‘trundling along the bottom’, with activity and confidence in the market starting to increase.
I have certainly seen a huge increase in activity since the start of the year, with First Time Buyers and Home Movers in the belief that now is an excellent time to move house/buy on up the ladder. Lets see how this additional £50bn injection helps lenders, and get some competition back into financial services to help bring loan and mortgage rates down even further.
