Interest rates slashed again
Today banks slashed interest rates again by a further 1%, to boost the economy, with the Bank of England doing so they wish to try and stable the economy and have only just cut interest rates by 1.5% previously. This is the lowest that banks have dropped since 1951. Even Gorden Brown said today that he predicted that interest rates would fall, and would yet fall again, he even went as far to say that interest rates could drop by at least 0%, which has never been seen before, but it things carry on the way that they are, there would be no surprise that this would actually happen. Things have never been so cheap from the bank even since it was formed in 1694. Any body who currently hold a tracker mortgage would be very happy about the news of the cuts in interest rates and would welcome more to come. With many other mortgage holders they will be hoping even with a variable mortgage that the bank would pass down the savings on to them. If you have a fixed rate mortgage then this would not be a welcoming thought knowing your paying more then what the banks are actually charging on interest rates. Gorden Brown urged the top banks around the country to pass on these cuts in interest rates with Halifax a Lloyd’s agreeing to this.
The cost of borrowing has now dropped the lowest ever a whopping 60% in fact the lowest it has been in over 60 years as Britain continues to spiral down in to a black hole of a recession, and fears that it will be a long time until the UK bounces back from this disaster. Amazingly around 50% of the country has a fixed rate mortgage so they are still paying the same although rated have been cut and can feel the pinch, and can only start to reap the benefits when there mortgage runs out and they re mortgage.
