The chief executives of Assetz and mform.co.uk hit out against Thursday's Bank of England Base Rate ruling, expressing a distinct concern that the lack of action could see a strong negative impact on the UK mortgage market.
Eamonn Rice, mform.co.uk's chief executive argued that the Bank should have cut rates by a quarter point and had simply 'delayed the inevitable' by choosing not to, subsequently increasing the likelihood that a hefty rate reduction would be needed.
“It is clear that the credit crunch is having a meaningful impact on consumer spending and that this will increase as borrowers look to remortgage throughout the year," he said.
“We acknowledge that inflationary pressures are building and accept that there is concern. However a rate cut is needed and this decision will ultimately lead to bigger problems for mortgage holders.”
Stuart Law, Assetz chief executive, agreed, stressing that a 0.5 per cent cut would be in order at the April meeting in order to inject some liquidity back into the credit markets.
