CML responds to rate hold decision - expect a cut in November

Responding to today's MPC decision to hold interest rates at 5.75%, the Council of Mortgage Lenders says that the hold was widely expected but that a cut in November remains the most likely prospect.

Michael Coogan, CML Director General, commented: "We did not expect the Bank to cut rates today, but we do hope for and anticipate a cut in November. Even this is not a certainty though, so borrowers should continue to plan for rates at or around current levels. Pricing in the mainstream market is stable, and fixed rates have started falling recently, but there is still uncertainty about how long it will take for stable funding to return to the sub-prime market. In the meantime, borrowers in this sector are facing tighter criteria and higher rates, although the availability of funding does seem to be improving."