MDM Comment on Interest Rate Drop

Lisanne Mealing
Managing Director, MDM Associates Limited
Independent Financial Advisers based in Ripley, Surrey.

As you know, Bank Of England just dropped rates to 0.5% - how do you feel about this? Word on the street is that there is an increase in enquiries from 1st time buyers in the mortgage market. To obtain a decent rate they need to have a good deposit probably in the region of 15%, however those ready to act can probably tie themselves into a reasonable rate from between 2 to 5 years. Borrowing is coming down but a fixed rate may help budgeting in the longer term.

What's your view?