Industry figures have mostly welcomed the Bank of England’s decision to cut base rate to the lowest ever level of 0.1 per cent and restart quantitative easing, even though it will have no immediate impact on many borrowers’ costs.

Mortgage Strategy has brought together the reaction from across the housing market and wider financial services sector to today’s historic decision.

London Money director Martin Stewart says the decision by the Bank of England is irrelevant and much more drastic action is needed to put money directly into the hands of the people.

He says:“The base rate was made redundant in 2009 and hasn’t regained its position since. 

“The cheap money is not reaching where it is most needed – directly in the consumer’s pocket. 

“Liquidity is struggling, businesses are suffering cashflow heart attacks and it all leads to the consumer not being able to meet their obligations. 

“We need the whole of the UK payroll to be nationalised as soon as possible, the consequences of that decision can wait for another day.”

However, others were more positive about the news.

Knight Frank Finance managing partner Simon Gammon says:

“The second cut to the Bank of England’s base rate in a matter of days means anybody on a tracker mortgage will see an immediate cut to their outgoings.

“In many cases it will gradually feed through to fixed-rate products, but with lenders under financial pressure brought on by the spread of Covid-19, their approach is unlikely to be uniform.

“Activity in the mortgage market was already at a four-year high before the first rate cut to 0.25 per cent last week.

“It’s likely this cut will underpin further activity in remortgaging.”

Mojo Mortgages co-founder Richard Hayes says:

“Looking specifically on how this further base rate cut will affect mortgages and lenders, we believe this cut needed to happen in order to increase the margin lenders currently operate within.

“While we don’t expect this cut to be filtered down into a consumer’s current mortgage product, April is set to be the second biggest month for mortgage maturities this year.

“Despite the pandemic, there will be £21bn of loans maturing and therefore a lot of people will need to remortgage.

“Those who haven’t managed to sort out their remortgage already in time for April should really look to do it now. 

“Rates are at a historical low, and if it could mean saving hundreds on your current mortgage deal, then it’s a no brainer.”

Fidelity director for personal investing Tom Stevenson says:

“Britain is now a whisker away from the negative interest rate club. Rates have never been this low in the more than 300-year history of the Bank of England. “Purchases of government and corporate bonds have been ramped up. 

“A desperate measure for a desperate situation.

“Both governments and central banks have quickly acknowledged that we face a sharp downturn. 

“The question now is whether the bank’s assumption that the hit will be temporary is correct.

“It could be. The infrastructure of global supply remains in place and global demand should bounce back quickly once the outbreak passes.

“Attention now shifts to the US. If this becomes the new epicentre then we can expect a further leg down for financial markets but if the outbreak can be contained and monetary and fiscal measures take effect at pace then there is scope for a stabilisation. 

“The bank is right to throw everything at this.”

Landbay chief executive John Goodall says:

“It is hard to see how this extra 0.15 per cent drop in base rate will make much of a difference. 

“It is the £200bn bond buying programme that is more relevant; although it is basically printing money again, this is more likely to push cost of borrowing down, although I suspect the Bank will need a lot more than £200bn.  

“What will make the biggest difference now are fiscal measures such as grants for businesses and other steps to help to maintain employment levels.”