Rate freeze ‘will help borrowers’ confidence’

Paul Smith, chief executive of haart estate agents, asserts that a rise in the cost of borrowing would have had a negative impact on Britain’s housing market, which he claims is still reeling from the shock rate increase in January.

Following the Bank of England’s decision to increase the base rate of interest at the beginning of 2007, many people found themselves in difficult debt management circumstances and the number of home repossessions rose, Mr Smith points out.

“Holding the interest rates will help to reinstate consumer confidence and is particularly good news for first time buyers who are already struggling to get on the property ladder,” Mr Smith commented.

A report from the Consumer Credit Counselling Service last month suggested that Britain’s homeowners are set to be “on the rack” throughout 2007.