FTAdviser.com

Advertising

On the face of it, this is good news for the more than depressed mortgage market, but will it bring instant relief for all?

The short answer is probably no!

Not all lenders have passed on the rate cut to borrowers. With the strong possibility of further cuts in 2009, many homeowners may be inclined to make that move they've been putting off.

There is an element of 'chicken and egg', however, in that we need to stimulate the market for first-time buyers for the rest of the market to start moving.

There's no clear evidence that this segment has been suitably stimulated, with lenders hesitant to offer deals that will be both attractive enough and affordable to those entering the market for the first time.

To read the rest of this blog, and post your comments, click here.