Estate agents hope for interest rate cut

The National Association of Estate Agents (NAEA) is hoping for reductions in the base rate of interest.

According to the organisation, when it comes to setting interest rates, the Bank of England should act in a way that does not damage the UK economy and offers some support to potential borrowers.

Credit consumers are finding it tough to become debt free and increasing interest rates would worsen their situation and dampen the prospects for the housing sector, the NAEA maintains.

“We understand that there are significant pressures on the wider economy at this time,” said the association’s chief executive Peter Bolton.

“As a result we urge the Bank of England not to raise rates today and to decrease them as soon as possible.”

The levels of interest being charged on fixed-rate mortgage deals in the UK are continuing to rise despite the fact that swap rates between financial institutions peaked several weeks ago, MoneyFacts.co.uk reported recently.

By Giles Stevenson