If we thought that last months interest rate cut was exceptional, then look at what the Bank Of England has delivered yesterday.  They have once again delivered a record breaking interest rate cut down to 1%. This is clearly good news for those with mortgages providing the banks pass on those interest rate cuts down to the consumer.

However a mixed message came from small businesses who are saying it is all good and well reducing interest rates, but many banks are just not lending to certain business types or in fact increasing interest rates because they feel they are too much of a risk. The underlying message is good for existing borrowers, but not yet teh solution for first time buyers.

Many first time buyers are still no too impressed, with some mortgages requiring a 40% deposit. Of course the lower interest rates are also affecting the savers, and for many first time home buyers, they are a saver before a buyer.
A suggestion on a major national news channel yesterday was for the government to offer an interest free loan to cover the deposits required by mortgage lenders, to get those looking for a home into the market much quicker. The criticism was the interest rate cut is a good step, but probably will make little difference to last months already very low cut. The government needs new initiatives, was the suggestion, to cover the reasons why banks are just not lending money, was the comments.