Today Mark Carney and the Bank of England announced that they would be cutting interest rates from their current 0.5% to a new record low of 0.25%.
This is the first movement in interest rates in seven years and it is thought a further cut could be on the horizon as the Bank of England attempt to stimulate the British economy following the exit from the EU.
Property expert and eMoov CEO, Russell Quirk, comments on what this drop in interest rates means for UK homebuyers and sellers.
Today’s cut in interest rates will come as welcome news to UK homebuyers who will continue to enjoy rock-bottom mortgage rates as a result of this latest cut.
The Brexit result brought about sensationalist prophecies of a less stable housing market and, as a result, many would have been deterred from buying. However, today’s news should come as a reassurance that the UK property market is in a more than stable condition.
A cut in interest rates is the antidote for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.Russell Quirk