Rate cut 'a welcome relief'

Remortgage and mortgage borrowers have been advised to welcome the Bank of England's 0.25 per cent base rate cut as a sign of relief.

MoneyExpert.com's Sean Gardner said that consumers finding it difficult to meet their mortgage payments may see budgetary constraints eased if lenders choose to pass on the Bank's cut.

For those with poor credit records, getting a mortgage or remortgage deal could be easier and consumers may have to rely less on loans and other forms of credit, he added.

"Cash-strapped consumers have had a rough ride over the past six months and with confidence in the money markets so low it is fair to say that a rate cut should come as welcome relief," said Mr Gardner.

Independent mortgage broker John Charcol said that the monetary policy committee implemented the smallest possible cut, noting that further rate slashes would be needed in the coming months.

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