Mortgage rate falls to just 1%
The Bank Of England has announced that the mortgage rate has just been reduced by 0.5% to 1%. The major lenders have pledged to pass this saving on as much as possible.
This is the lowest it has ever been, giving every mortgage holder a real boost in the cold weather. Can this level be sustainable? Only time will tell.
This does not give lender much profit to play with, maybe the BOE thought that lenders were putting their shareholders first previously and want to give some cash to the general populace. As mentioned, hopefully this money will not be found at savers expense or at the expense of new mortgage borrowers.
Gordon Brown must be up to something, no-one had a problem with the banks making money during the good times. The more money they made the more there was to be lent out, he cant cut again though?
Comment by Leon — 10 February 2009 @ 4:37 pm