Council of Mortgage Lenders response to rate cut

Responding to the decision to reduce the Bank rate by 50 basis points to 0.5%, CML director general, Michael Coogan said: "This latest cut presents immense challenges for lenders whose margins are already squeezed as a result of previous reductions, leaving little scope to lower discretionary mortgage rates further.

"Savings are the lifeblood of mortgage lending, and unless lenders can offer competitive rates to savers their ability to offer new mortgages is restricted.

"National Savings and Investments this week reported record inflows of savings, sucking more money out of the mortgage market, so today's cut represents a double whammy for prospective mortgage borrowers."