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Interest Rates Cut to 4.5%
In another week when the financial services industry was front page news, the Bank of England cut interest rates to 4.5% from 5% - the biggest single cut in interest rates for 7 years.
The cut has already been implemented by a number of big mortgage lenders. Halifax, LloydsTSB and Cheltenham & Gloucester have cut their standard variable rate (SVR) from 7% to 6.5%, and customers on a tracker mortgage will also see a cut of 0.5%. Both cuts come into force on 1 November. Other HBOS brands, such as Intelligent Finance and Bank of Scotland, are cutting their rates in line with Halifax.
Woolwich, RBS and NatWest have also passed on the full 0.5% cut on their SVR and tracker rates.
Tony Rice, of specialist mortgage brokers TMP Mortgage Zone said, "With over half of borrowers on a fixed rate mortgage, they won't be affected by this interest rate cut at all. However, this is good news for all borrowers on a tracker rate as it is a substantial cut. If, for example, your tracker rate was 0.5% above the base rate and you had a £120,000 mortgage, then you will see a £35 cut in your monthly mortgage payments from next month."
[ 10-10-2008 ]
