Interest Rates Drop 1.5%
Wow, didn’t see this one coming, and neither did other industry leaders…
Ben Thompson, mortgages director at Legal & General said:
If you consider that just six months ago Mervyn King was saying that there would be no rate cuts until 2010, the mindset now is completely different.
The size of the cut, the biggest since 1981, is an effort to boost the economy, however, the message it is also sending is to the UK public is that a recession is coming, so we need to protect our finances.
For mortgage owners, this means:
- Fixed Rate Mortgages - Nothing, you are on a fixed rate that is not affected by base rate changes
- Tracker Mortgages - Your rate should drop by 1.5% until you have a minimum rate clause
- Discount or Variable Rate Mortgages - soley at the discretion of the lender, they will probably drop the rate .5 or 1%.
Read more on the new base rate at:
UK Interest Rates Slashed to 3% - BBC News
Interest Rates Drop By 1.5% - Money Marketing
Urgent 1.5% Base Rate Cut - MoneySavingExpert.com
Get your FREE mortgage or remortgage quotes with Best Quote Mortgages
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment