Base rate cut does little to help mortgage borrowers

It is unlikely that the current turbulence in the UK economy will be eased by the latest cut to interest rates.

That is according to personal finance site Fool.co.uk, which noted that conditions in the mortgage market were becoming increasingly tough.

Research conducted recently by the site discovered that three out of four homeowners will be affected by the withdrawal of reasonably-priced products.

Commenting on the Bank's latest base rate decision, David Kuo, Head of Personal Finance at Fool.co.uk, said that it was "unlikely to make much difference to worsening credit conditions".

He added: "In less than a month, the mortgage market has gone from a financial jungle to the law of the jungle, which has left many borrowers bereft of choice. Only the financially fittest will survive."

He advised that, where possible, consumers should seek to reduce the size of their loan by using emergency savings.

Mortgages News posted on 11/04/2008 09:03:12