News Article
Legal and General life cover provider comments on interest rates
The provider of Legal and General life cover has said that it is "just a matter of time" before interest rates are cut again by the Bank of England.
According to the life assurance firm, concerns over the economic slowdown will result in the reduction.
The bank decided today to keep the base rate of interest at five per cent, after reducing it in recent months from a high of 5.75 per cent.
Mortgages director at Legal and General Ben Thompson commented: "It's just a matter of time before the next quarter point cut and the summer of discontent for borrowers continues."
The mortgage expert also commented on consumer trends prior to the credit crunch, where loans lending was far higher and credit was much easier to maintain.
He added: "The market pendulum had swung too far one way with cheap and easy credit and then the crunch came along and made it swing too far the other way.
"Lenders are still being very cautious and favouring direct lending, whilst brokers continue to tear their hair out."