The decision by the Bank of England’s Monetary Policy Committee to reduce the base rate to 0.5 per cent has been met with mixed reviews from property experts.

Michael Coogan, director general of the Council of Mortgage Lenders, says it presents problems for lenders, which are already feeling the squeeze from previous cuts.

"Savings are the lifeblood of mortgage lending and unless lenders can offer competitive rates to savers their ability to offer new mortgages is restricted," he continues.

Furthermore, the expert believes recent findings from National Savings and Investments create further problems for the mortgage market as people are increasingly more likely to save.

The Building Societies Association has also expressed worry over the decision, with its director general Adrian Coles saying it will "harm the aspirations of the many people who are finding it difficult to get a mortgage".

He believes buyers with small deposits may experience problems, with only some of those who have variable rate or tracker mortgages likely to benefit.

Iva.com reported in March 2009 that homeowners should prepare themselves for inferior mortgage deals when their current tracker expires.