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Mortgage rate cuts predicted
03 November 2008
The Bank of England are expected to cut the cost of borrowing by up to 1% this week in an attempt to avoid a recession. The cut would take rates to the lowest level for five years to 3.5%. It is hoped that this cut will be passed onto homeowners however mortgage lenders failed to pass on the last bank base rate cut last month as they faced high interbank lending costs.
Of the 44% of lenders that did announce rate cuts last month, a number of them did not make the full 0.5% decrease.
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