Bank of England base interest cuts are not having a positive effect on the property market because providers are not passing on the rates, one specialist has suggested.
Mortgage expert at comparison site Moneyextra.com Richard Mason said that initial optimism within the sector is being dampened by a reduction in the number of successful transactions.
Commenting on the situation, he remarked: "When the base rate came down to its record low three or four months ago, we saw a response in the market that suggested the end of the recession was in sight."
Unfortunately, the number of available mortgage products on the market has gone down by 15%, with fixed-rate deals experiencing a 24% reduction, Mr Mason stated.
While base rates will probably stay the same, he added, consumers will not benefit until lenders loosen borrowing criteria.
In recent news, a Moneyfacts spokesperson confirmed that there had been a surge in people seeking fixed-rate mortgage deals due to concern over interest rates.
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