As widely expected, the Bank of England today announced a 0.25% cut in interest rates, bringing the base rate down to 5.25% for the first time in over a year. This is good news for those borrowers currently on a base rate tracker scheme as it will reduce their monthly repayments by over £30.00*.
However, for many borrowers on discounted rates or those paying the lenders standard variable rate, the next few weeks will be an anxious period as they wait to see if their lender will pass on the cut, and if so, whether it will be the full 0.25%.
So far the news is promising, as many of the UK’s biggest mortgage lenders (including Abbey, Halifax, Nationwide and Woolwich), have already announced that they are passing on the full 0.25% reduction, but with most yet to react, there is still time for the picture to change. * Based on an interest only mortgage of £150,000