Mortgages Expert welcomes the Bank of Englands move to cut the interest rate last week by 0.25% to 5.25%, though this is less than the 0.5% expected.
This 0.25% will hopefully filter through to the mortgage market with many lenders already reducing their standard variable rates including Abbey, C&G, Nationwide and Woolwich these and other deals can be seen at http://www.mortgages-
What does this mean for the average mortgage holder. Well if you have a tracker mortgage then the amount you are paying will be reduced. If you are on a standard variable mortgage then you will have to wait to see if your lender passes on the full 0.25%. If you have a fixed rate mortgage and it is coming to the end of its initial term then the difference between what you probably are paying and what you will be paying will have been reduced.
There are many who still believe that the Bank of England Base rate still needs to be reduced further and if you are one of them, then we would suggest you consider a no tie in tracker mortgage until you believe the rate will increase. How far will they fall? We'll last month predictions were of 5% by the end of 2008 but many top analysts are now predicting 4.5% and some as low as 4%.
We at Mortgages Expert are satisfied that homeowners facing difficulties in repayment of their mortgages and secured loans are in for a small relief for the first time this year.
We believe house price increases have ground to a halt so is now the time to be looking?
