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Lenders 'should pass rate cuts on' to secured loans holders

Lenders 'should pass rate cuts on' to secured loans holders

Category: Loans

Updated: 31/10/2008
First Published: 27/10/2008

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Further calls have been made for lenders to pass on interest rate reductions to secured loans holders.

The Homeowners Advice Centre has stated that the government and the Bank of England have been taking the "right kinds" of steps, but consumers are yet to see the benefit.

Such steps include the Bank's decision to lower the official base rate of interest by 0.5 per cent to 4.5 per cent earlier this month.

Advisor at the body Al Elliot remarked that first-time buyers in particular would benefit from lower rates and that lenders should recognise that profits will not be as high over the next year.

But he added: "As it is ... I can't see them passing up profit opportunities and therefore will seek even more repossessions this coming year."

The Council of Mortgage Lenders recently predicted that around 45,000 properties will have been repossessed by the end of this year.

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