The Council of Mortgage Lenders spokesperson on the radio said that the £50 Billion injection would shave 0.1% off of mortgage interest rates; an amount that could easily be achieved by haggling. The Banks debt problems in the UK amount to £750 Billion this year alone so the BOE help is merely a drop in the ocean.

john, milton keynes,

Er... i think you mean £200 worse off per MONTH. Use a calculator.

big ron, dartford, uk

It would appear this current Chancellor has not learnt the lesson that buying a house is like any financial investment and the market price will fluctuate.

To try and re-inflate the balloon and buck market trends is a disastrous policy and I hope the banks do not fall for this poliyical three card trick. First time buyers should be very careful about entering the property market now. If needs must be canny in their bargaining.

What I find horrific in todays enconomy is the 20% devaluation of the pound against the euro, and a small devaluation against the US dollar. As much of our energy supplies are in the hands of European companies this will mean a horrific increase in the cost of home and factory energy costs. Apart from ever increasing costs of food items. This government appears to be sailing on a pacific ocean of denial as to the strains on family finances over the next few years.

M. Butcher, W-s-M, England

There was once a hedge fund called " UK INC "..................JP

jay pandya, zurich, switzerland

Why is saving these days for what you want such a dirty word.Years ago people saved for the 10% deposit for a house it was normal.People saved for most things.We live in a society of i want it now dont save cannot afford it but if we get into debt we will sell the house its gone up loads

terence hilton martin, cottingham, east yorkshire

Your maths is wrong. Higher mortgage rates increase a £200,000 mortgage by £200 per month not per year!
Jonathan isle of wight"

jonathan, isle of wight,

Jim. UK has "default" insurance too- has done for decades. Most UK mortgages with a 80% or more loan to value ratio the lender insists on mortgage indemnity premium the cost of which is usually tagged on to the mortgage itself . It only insures the lender though. I agree though that the Canadian market is more sensible but then that seems to be due to more sensible attitudes here not Mortgage insurance.

SSaines, toronto, Canada

The fact that Banks are still increasing interest rates despite BOE proposals shows that the situation is far worse than admitted.

john, milton keynes,

I am always cynically amused by the repeated refereces to the great hardship imposed by having to come up with a deposit...sometimes even as much as 10%!! Why is there so much hand-wringing over this requirement, especially given that with declining values anything less than 10% will almost certainly push new buyers into negative equity? I'm amazed the banks aren't asking for closer to 25% down. To do less in a downwardly volitile market is surely irresponsible. Where I live (Canada) 25% is the standard; any with anything less the purchaser has to buy default insurance. The Canadian housing market has avoided the turmoil experienced by the UK and the USA, and I think it's clear why. And plenty of responsible first-time buyers are still able to 'get on the ladder'.

Jim McLaughlin, Calgary, Canada

Two words - stamp duty.

Buy a house at £250,000 and the government charges you 1% - £2500. Buy at £250,001 and you'll be charged 3% - £7500. This is a big disencentive to move house.

If the housing market is so fundamental to the health of the UK economy, why doesn't the government change this tax?

The thresholds could be raised and a 2% band could be introduced. Tiered thresholds would also be a bit fairer.

But then, tax and spend is the Labour way - we know this.

Gilly, Berkhamsted,

Surely this is bad for 1st time buyers, it's just going to keep house prices artificially high... if it works

dan, crawley,