Interest Rates Slashed to Lowest Ever Rate
In the second emergency reduction in just over a week, The Bank of England slashed interest rates to a record low of 0.1% on 19 March, triggering mortgage rate reductions for homeowners on tracker rate and some standard variable rate mortgages.
What does that mean for you?
Those with tracker mortgages, which go up and down in line with the base rate, will benefit automatically from both rate reductions that have taken place recently. If you aren’t sure what this means in terms of your mortgage, check whether you have a cap on your mortgage tracker rate and speak to your lender to confirm.
You could also benefit if you are on a standard variable rate. The difference with this type of mortgage however is that lenders don’t have to pass the saving on so make sure you contact your mortgage provider to see if they will be doing so.
How much will homeowners save?
The cumulative 0.65% reduction to the base rate will see people with a mortgage of £100,000 saving £650 a year if lenders pass the saving on in full. This of course will increase depending on the size of the mortgage.
What if I’m looking for a new mortgage?
Mortgage rates have been low for quite some time and while they may still dip further, if you do qualify for a deal why not secure a fantastic rate right now?
For more information on these cuts Money Saving Expert have lots of useful information available.