CML responds to rate hold decision

It was no surprise that the MPC decided to hold rates at 5% today according to the Council of Mortgage Lenders.

CML director general, Michael Coogan commented: "We expected the MPC to hold rates today as it wrestles to control rising inflation in a weaker economic outlook.

"But clearly there are still affordability pressures on borrowers and a widespread funding shortage for lenders. We hope that as the effects of the Bank of England's liquidity scheme feed through the financial system there will be some benefits for mortgage lenders, and in turn borrowers, later in the year."