Financial news categories
Financial news archive
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Good news at last as interest rate is cut
06 November 2008
The Bank of England has slashed interest rates to 3%, the lowest level since 1955. It is hoped that lenders will pass on this drop to the cost of their variable rate mortgages however Michael Coogan, of the council of Mortgage Lenders said that lenders would take their time given the size of the cut by the The Bank of England.
Lenders have been under increasing pressure from politicians to pass on cuts in interest rates. Prime Minister Gordon Brown said on Wednesday before the interest rate cut announcement, "We want the banks and building societies to pass on the interest rate cuts to their mortgage holders".
Major lenders including HBOS, Abbey, Alliance and Leicester, Barclays and HSBC have said their variable rates are "under review".
A customer with a 25 year £150,000 mortgage on an average 2 year tracker tracker rate of 6.27% will see their monthly repayments fall by £134 to £856.
Search for the best UK Mortgages
