Yesterday's announcement by the Bank of England to cut the base rate by a quarter of one per cent to 5.25% - the first this year - has been welcomed by industry experts in Ulster.

Mr Simon Brien, director at BTWCairns, said of the eagerly anticipated rate cut: "It should come as a welcome relief to existing home-owners who have base rate tracker-style mortgages and will make existing market conditions more attractive for first-time buyers."

He predicted the housing market here is entering a more stable period after the property boom of 2006/2007.

Mr Brien added: "Undoubtedly, this cut in the base rate will instil further confidence and growth in the market - albeit at a more sustainable rate."

Meanwhile, figures from the Council of Mortgage Lenders (CML) show savings of around £15 a month on borrowing of £100,000 on a repayment mortgage, with an extra £20 in the budget for those with interest-only deals.

Mr Michael Coogan, CML director general, said: "This is good news for the quarter of UK borrowers on tracker rates who will see an imminent reduction in rates."

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