Interest rates lowered to 5%
by Kay Murchie
Following the Bank of England’s Monetary Policy Committee (MPC) meeting this morning, the base rate has been cut from 5.25% to 5%, as widely expected by economists.
This is the third time since December that interest rates have been cut in an effort to protect the economy from the global credit crunch.
However, due to the credit crisis, which makes funding mortgages more expensive for banks, lenders may not pass on the full reduction to borrowers.
Mortgage rates for many borrowers have actually increased and the central bank’s credit conditions survey last week warned that the situation could deteriorate.
The six million homeowners who have a tracker mortgage are the most likely to benefit from the interest rate cut as they move in line with the base rate. Those with a £200,000 mortgage will save over £30 a month.
Discuss this in the Finance Markets forums
Story link: Interest rates lowered to 5%
Related financial stories to: Interest rates lowered to 5%:
- Euro zone interest rates cut from 3.25% to 2.5%
- Demand for government debt continues in Europe
- Savings rates not falling in line with interest rate cuts
- Eurozone cuts interest rates by 0.5% to fight off prolonged recession
- Halifax raises rates for new borrowers
Next: Leading lenders honour base rate cut »
Visited 1279 times, 3 so far today
No Comments »
No comments yet.
RSS feed for comments on this post.
