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Mortgages 'boost' for graduates as Bank cuts rates again
Friday, 05 December 2008
Life after graduation
The decision of the Bank of England's monetary policy committee to cut interest rates again may come as a boost to graduates seeking to establish a foothold on the housing ladder.
After last month's shock reduction from 4.5 to three per cent, the Bank took another one per cent at rates, leaving them at a historic low.
For those working in graduate jobs, this decision may increase the accessibility of mortgage finance, which has been in short supply in recent times due to the borrowing crisis.
According to Sean Gardner, director of MoneyExpert.com, the interest rate cut will "bring further relief to homeowners".
He added that potential buyers needed high street lenders to pass on the interest rate savings to consumers in the form of improved deals.
Mr Gardner commented: "With a base rate of just two per cent borrowing money should be cheap as chips - the problem for consumers will be finding a lender willing to part with some cash in the first place."