INTEREST RATE CUT COULD HELP CUSHION THE HOUSING MARKET

Interest rate cut could help cushion the housing market
  • Interest rates have been cut to 0.25% in a bid to shore up the economy amid the ongoing coronavirus outbreak. This is the first time since the financial crisis that the Bank of England has announced an emergency move.
  • Low interest rates may well help cushion the housing market in the months ahead. Over 70% of homes are purchased with a mortgage.
  • According to data from the Bank of England, activity in the mortgage market is currently at a four-year high and mortgage rates are increasingly competitive on the high street.
  • In 2008, interest rates were cut for six consecutive months, falling from 5% in September 2008 to 0.5% in March 2009. Low interest rates helped the property market rebound throughout 2009.

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