9Oct
Base rate cut 'must be passed on'
The high street banks must pass on the base rate cut to mortgage
customers if it is to help the property market as desired, the Home
Builders Federation (HBF) has said.
Responding to the decision to lower the base rate from five per
cent to 4.5 per cent and the government aid package for the banking
system, HBF executive chairman Stewart Baseley welcomed the
measures, but said it may need action from Alistair Darling to
ensure mortgage lenders respond favourably.
He stated: "I hope that the chancellor will ensure that banks now
start to restore mortgage lending to more normal levels."
Mr Baseley also said Mr Darling should work closely with the Bank
of England to assess if more rate cuts are required.
In its response to the news yesterday, the Royal Institution of
Chartered Surveyors suggested there will be more rate cuts in the
months ahead, eventually bringing the base rate down to 3.5 per
cent.
