Bank of England slashes rates |
07 2008 |
| The Bank of England yesterday (November 6th) slashed interest rates by a third, taking them from 4.5 per cent to just three per cent; the lowest they have been for over 50 years. Facing extreme pressure to act ahead of the potential recession predicted for 2009, the Bank made a drastic attempt to stimulate spending throughout the UK. But many of those hoping to buy a new home and enjoy the lower interest rates will be disappointed as some analysts predict that not all mortgages will become cheaper. Adrian Coles, director general of the Building Society Association, said: "This reduction in the bank rate will provide some support to the housing market and especially borrowers on tracker rates. "However, borrowers looking for new fixed rate deals or homeowners with mortgages linked to money market rates will not necessarily find their mortgage rate decreasing". As mortgage availability remains difficult and with the cost of a mortgage unlikely to drop, renting a property at a time of economic crisis may appear more attractive than buying.  |
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