Interest rates held at 0.5%

04-Jun-2009

The cost of borrowing was frozen at 0.5 per cent for the third month in a row today.

In March, the Bank of England's monetary policy committee (MPC) brought the interest rate down to 0.5 per cent and it has remained at this level after the last three base rate decisions.

With interest rates at record lows - a position they are expected to be in for the rest of 2009 - the small cost of borrowing could prompt first-time buyers to get their inaugural mortgage and jump on the property ladder.

High deposits need to be found for home loans, but Building Societies Association head of mortgages Paul Broadhead said this week that the first-time buyers who can call on the financial aid of their parents are in a good position to purchase bricks and mortar.

"The mortgage rates are historically low [and] property values are lower than they have been for a number of years," he explained. "It's a great time for [first-time buyers] to get [on the property ladder]."

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