Interest rate cuts of no help to first-time buyers

INTEREST rate cuts are good news for people who already have mortgages but bad news for potential first-time buyers, according to broker Conor Burke, pictured.

Speaking from his Network Direct office yesterday, the company director also said banks in Guernsey would be facing the same pressure to pass on the latest cuts as those in the UK.

'With rate drops, there are lots of opportunities for people with existing mortgages, especially people who took two- or three-year fixed mortgages in the last few years, because now is a good time to switch to get a better deal,' he said.

With competitive rates around, people must realise that they do not have to stay with the same provider, he said. Those with tracker mortgages, which follow the UK base rate, would automatically see a benefit.

'Seek advice, have a look around and concentrate on finding better rates.'

The downside to the development would be for potential first-time buyers, he said.