CML 'unsurprised' by interest rate hold

The Council of Mortgage Lenders (CML) has stated that it is "unsurprised" by the Bank of England''s decision to hold interest rates at five per cent.

Michael Coogan, the organisation''s director general, said that it was disappointing that the monetary policy committee has not decided to "anticipate the worsening economic environment".

He went to say that borrowers are generally coping well, but had advice for those who may not be.

"Anyone who is in financial difficulty, or thinks they may have a problem in the future, should contact their lender or a debt adviser," he explained.

"The earlier you make contact, preferably before you have any arrears, the more options may be available to resolve the financial problem."

Speaking at a recent Debt and Personal Finance All Party Parliamentary Group meeting, Mr Coogan said that all mortgage borrowers will be affected by the credit crunch "in some way".

However, he explained that rises in fixed-rate payments may still be affordable for those who have experience an increase in salary.

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