Another drop in interest rates |
The Bank of England has announced that this month’s drop in interest rates will be 0.5%. This brings the base rate to 1.5%, which is its lowest level since the Bank of England was formed in 1694.
While a cut would normally be great for mortgage holders, in the current economy, many banks are not passing on the full extent of the rate cuts to borrowers. The best deals are also not available to people who do not have a 25% deposit. The best 75% Loan to Value loan fixed rate mortgage available (Cheltenham & Gloucester) has a rate of 4.29, while the best 90% Loan to Value fixed rate mortgage (Britannia) is 6.09%.
