Interest rates have been slashed down a further 0.5%, now resting at 1.5%. The rate becomes the lowest ever set by the BOE in its 315 year history. The Bank of England has now reduced interest rates four times from Octobers original 5% level.
Customers with mortgages linked to tracker deals will automatically have the cut in interest rates passed on to them by their lender. This is definitely good news for anyone with a mortgage but for savers it is a nightmare.
How the interest rates could affect your mortgage –
People with an average repayment mortgage of £150,000 will see their monthly payment fall by roughly £46.00
Those with a tracker deal on a £250,000 mortgage will save roughly £76.00 per month.
But anyone with a standard rate variable mortgage will have to wait to see if their lender will pass on the rate cuts.
Skipton Building Society, HSBC, HBOS, Lloyds TSB and Nationwide have said they will pass on some or maybe all of the reduction, but have not quoted figures yet. All other lenders have yet to decide what will be passed onto to home owners.
Posts
No comments:
Post a Comment