Bank Of England cut Mortgage Rate to 2%
In an even more surprising move than last month the Bank Of England have cut the mortgage rate again to 2% which is the lowest level since 1951. This follows on from last months 1.5% cut.
Many people (me included) are enjoying the lowering in their mortgage payments with almost half being cut from payments in recent month.
The government and BOE had to been seen to do something, and this will ease the hardships that borrowers have experienced. The Bank Of England have indicated that further action will need to be taken, with possible further cuts to come plus investment in mortgage and commercial debt to free up the borrowing system.
Expect more changes in the months to come, the crisis is expected to extend well into 2010.
How low will they go? Are we not in danger of creating a new problem if we force the mortgage industry to work with smaller margins? Companies wont want to offer them, meaning we cant get mortgages again.
Comment by jon — 10 December 2008 @ 1:48 pm