How will today's interest rate move impact upon mortgage holders?
Today's announcement by the Bank of England that UK base rates have fallen from 1.5% to 1% has been greatly received by those holding mortgages throughout the UK. The largest impact will be felt on those with tracker mortgage agreements were such lucky customers as those with the Cheltenham and Gloucester will actually see their interest charge reduced to 0% in the short term. But this is not the case across the board although there should be substantial savings as the cumulative effect of ongoing base rate reductions starts to hit home.
While those with more traditional variable rate mortgages we have to wait a little longer to feel the impact of today's best reduction it would appear that the government has got mortgage providers on the run and they are starting to respond to these reductions. Many will have small print within their variable rate agreements ensuring that the difference between base rates and their mortgage rates does not exceed an agreed limit.
Those with fixed interest mortgages will be least effected although, depending upon their fixed rate, there is the potential to remortgage for those in a position to offer a 20% deposit for the best rates.
Share this..
Related stories
Northern Rock Announces Loss Of £585 Million And Possible £3 Billion Present From The Treasury
News that the Northern Rock has made a loss of £585 million in the first six months of the year is a little higher than the £500 million forecast we reported on just a few hours ago. However, while the figures themselves are bad it has been announced that the government is preparing to write of £3 billion of the near £20 billion due to the tax payer. In a complicated action the government wi...
Read MoreBarclays top bosses waive 2009 bonuses
In a move which is sure to put more pressure on the rest of the UK banking sector it has been revealed that John Varley and Bob Diamond, the two most prominent figures in the Barclays bank operation, have waived their bonuses for 2009. At a time when the bank has put aside nearly £3 billion for staff bonuses it is unclear exactly what bonuses the two executives would have been entitled to, althou...
Read MoreLloyds bank confirms 95% take-up of rights issue shares
Lloyds bank has today confirmed that 95% of the new shares on offer in the £13.5 billion record-breaking rights issue have been taken up by existing shareholders. This leaves a relatively small amount of shares to be placed with institutional shareholders and allows the company to move on to stage two of its financial restructuring which will see a further £9 billion injection for the company's...
Read MoreWhen will the ever increasing number of repossessions start to fall?
Looking back at figures for the first three quarters of 2008 there has been a gradual increase in the number of house repossessions in the UK. The figure has now reached levels not seen since the tough recession in the 1990s and there are real concerns that this figure has not yet peaked and may well become the highest seen for decades in the UK.
The government has been attempting t...
Number of million pound properties triples
The number of properties selling for a million pounds or more has almost tripled in the last five years, according to research from Halifax Estate Agents.Some 6,170 homes were sold for over a million in England and Wales in the 12 months up to June 2007, compared to just 2,249 for the corresponding period five years ago - and there are now an estimated 88,000 homes with a six-figure-plus value.Lon...
Read More