Rate cut will "boost" market - commercial mortgages

10 October 2008

The Bank of England's decision to slash mortgage rates will provide a "much needed boost" to the market, the director general of the Association of Mortgage Intermediaries has claimed.

Chris Cummings hailed the monetary policy committee's (MPC) announcement that the central rate is to be lowered to 4.5 per cent.

It came after several banks from around the globe joined forces and cut rates in a coordinated move in order to aid flagging financial conditions.

The US Federal Reserve, European Central Bank, Bank of Canada, plus the central institutions of Switzerland and Sweden all collaborated on the plan of action.

Mr Cummings remarked: "The concerted action from the leading industrialised nations is a welcome sign of a global response."

The reduction may help to lower the cost of commercial mortgages.

Several high-street banks, including Woolwich, Natwest and Royal Bank of Scotland, have announced mortgage rate cuts in the wake of the MPC's decision.