Wave director of sales and distribution Mehrdad Yousefi says the Bank of England’s monetary policy committee needs to cut bank base rate by 0.5 per cent by early summer to boost the struggling mortgage market.
He says: “We need interest rates to be reduced from 5.25 per cent to 4.75 per cent by early summer. That would be very encouraging. It would make sure it was less bruising for consumers and the housing market.”
Yousefi says the move would reduce borrowing costs and help borrowers become more optimistic.
He warns that confidence in the market is rapidly slowing and was dented further in last week’s Budget when the Chancellor failed to announce any specific proposals to help the market.
Yousefi says the Treasury’s forecast for growth this year of between 1.75 per cent to 2.25 per cent might be too optimistic as a result of this lack of confidence.
He says: “The housing and mortgage finance market is critical to the wellbeing of the economy. There needs to be some action.”