Rate cut could help homeowners afford conservatory
The recent decision by the Bank of England (BoE) to reduce the base rate of interest could see more homeowners invest in a conservatory or other home improvement.
Despite the cut being passed on by some mortgage providers, high deposits are still a major stumbling block for many buyers – leaving them facing up to the fact that they might have to stay in their current property.
But the lower interest rate may make a personal loan for a conservatory of extension more feasible and these improvements could actually lead the home increasing in value.
The cut was designed to stimulate both the mortgage market and the small business market but Association of Mortgage Intermediaries director general Chris Cummings feels that it might not be enough to kick-start the property market.
"Todays further interest rate cut is a welcome one and a sign that the bank recognises the seriousness of the situation we face," he said.
"This cut is essential to try to boost the ailing economy. However, on its own this move will not have the positive effect we need to get the mortgage market lending again."
According to the Royal Institution of Chartered Surveyors, November saw the least activity in the property sector since it began monitoring it 30 years ago.