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Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

Bank of England cuts base rate

05/03/2009

The Bank of England`s Monetary Policy Committee today announced it would be cutting its base rate by another half-point to 0.5%.

The cut is a further attempt to encourage banks and other financial institutions to lend money to businesses and individuals, which could help to revive the economy and limit the effects of the recession.

However, a number of lenders announced last month that they would be unlikely to change their customers` interest rates in line with future base rate cuts, and a number of experts have said that base rate cuts are no longer enough to tackle the economic downturn - adding that savers would be likely to suffer.

A spokesperson for Debt Advisers Direct said: "It`s less likely than in previous months that we will see significant falls in rates on mortgages and loans - apart from tracker deals, which are automatically tied to the base rate.

"The concern for many people is that savings rates are likely to fall, meaning those who rely on savings interest to supplement their income could lose out.

"However, we still advise that savings should be an important part of people`s finances. After all, any amount of savings offers better protection against falling into debt than no savings at all."

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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