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Great for First-Time Buyers (bad for savers & businesses)

Lower interest rates will be good news for borrowers but bad news for savers and businesses according to a leading Hampshire-based mortgage expert. 

Chris Schutrups, Founder and Managing Director of Southampton-based The Mortgage Hut, said the interest rate announcement could be a double-edged sword for the UK  housing market and the economic outlook for businesses.

Interest Rate Cut to 0.25%

The Bank of England announced today that it is going to cut interest rates from 0.5% to 0.25%. 
Chris said:

This is good news for anyone looking to buy a property at the moment because the interest rates are at an all-time low. From that point of view there has never been a better time to take out a mortgage in this country, ever. On the other hand this is further bad news for savers who have been generating little or no interest on their money for years now, and their position has just got worse.

Chris predicted that this could also be a blow to businesses with two of the big banks - RBS and HSBC - making it clear that they might start to charge businesses for holding their deposits if the interest rates had fallen further than the 0.5 per cent. 

"The biggest risk to the UK housing market is consumer confidence,” added Chris. “People whose confidence in the market is dented will spend less because they expect prices to fall, but this will ultimately slow down the growth of the economy.

Despite the uncertainty that the Brexit referendum vote caused for the UK, it is not expected that interest rates will rise again until the end of 2019 at the earliest.

The Mortgage Hut is a fast rising mortgage broker that was founded by Chris Schutrups five years ago. The company has five branches across Hampshire as well as a London branch with a team of 22 advisors.

The Mortgage Hut is based in Southampton, Hampshire, with Chris Schutrups at the helm as managing director. It is an expanding business and currently has five branches operating in Hampshire and London. The company provides advice on mortgages, remortgages, life insurance, critical illness cover, income protection, contents and buildings cover as well as surveys and evaluation.

The Mortgage Hut is also an umbrella company for specialist mortgage advisors Police Mortgages and The Contractor Mortgage Company.

For more information contact The Mortgage Hut.