|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Thursday 03rd of December 2009
April 10, 2008    

Interest rates lowered to 5%

Bookmark and Share

by Kay Murchie
Interest rates lowered to 5%

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%:
Previous: « Further sub-prime losses expected in British banks
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.

Leave a comment