Base rate slashed to 2%
Borrowers of mortgages for professionals could benefit from today's cut in interest rates from three per cent to two per cent by the Bank of England, it has been suggested.
According to Michael Coogan, director general of the Council of Mortgage Lenders, all mortgage providers will try to pass on savings to consumers in the form of cheaper mortgage products.
But he warned that many lenders are faced with conflicting objectives, with the desire to cut borrowing rates checked by meeting the needs of savers and helping customers who are struggling to meet their repayments.
Mr Coogan commented: "It is not realistic to expect them all to react in the same way to the rate cut - although where they believe they can cut mortgage rates, they will."
All lenders and not just the major banks need to receive support from the government to limit the impact of the economic downturn on the housing market, he added.
During 2008, interest rates have been slashed from 5.5 per cent to their current level of two per cent - the lowest base rate since 1951.
Mortgages for professionals provides expert mortgage advice and is committed to represent the borrower not the lender on over 30,000 mortgage products for high earning clients.
According to Michael Coogan, director general of the Council of Mortgage Lenders, all mortgage providers will try to pass on savings to consumers in the form of cheaper mortgage products.
But he warned that many lenders are faced with conflicting objectives, with the desire to cut borrowing rates checked by meeting the needs of savers and helping customers who are struggling to meet their repayments.
Mr Coogan commented: "It is not realistic to expect them all to react in the same way to the rate cut - although where they believe they can cut mortgage rates, they will."
All lenders and not just the major banks need to receive support from the government to limit the impact of the economic downturn on the housing market, he added.
During 2008, interest rates have been slashed from 5.5 per cent to their current level of two per cent - the lowest base rate since 1951.
Mortgages for professionals provides expert mortgage advice and is committed to represent the borrower not the lender on over 30,000 mortgage products for high earning clients.
