HOMEOWNERS in the south look set to see monthly mortgage repayments fall further and there is another fillip for business following the Bank of England's latest interest rate cut.

The decision by the Bank of England to reduce rates by a quarter of a per cent will save homeowners with a £60,000 mortgage around £9 a month.

Mortgages are now at their lowest rate for more than 40 years and borrowers have seen the monthly cost of monthly repayments drop by around £90 since the beginning of the year as rates have fallen from six per cent to 4.5 per cent.

The bank responded to calls from industry leaders to reduce the cost of borrowing by at least another quarter of a point in an effort to shore up business confidence. But industry and commerce would welcome still lower rates.

Alexandre Hamelin, policy and research manager at the Southampton and Fareham Chamber of Commerce and Industry, said: "A quarter per cent cut represents more of a gentle nudge to the economy than the decisive push that business was seeking.

"The economy is well-positioned to avoid recession, but a more significant interest rate cut would have sent a clearer signal that the bank is prepared to stop any slide gathering momentum.

"Under normal circumstances we would welcome a quarter point cut. But these are not normal circumstances, and with inflation under control the bank has the scope to act more decisively and more boldly in cutting interest rates."