Interest rates hit a 300 year low
9th January 2009
In news that may be of interest to property investors, interest rates have been dropped in a bid to counter the effects of the credit crunch, placing them at their lowest level in the Bank of England's 300 year history.
The Bank of England's Monetary Policy Committee voted to reduce the official Bank borrowing rate by 0.5 percentage points to 1.5 per cent, the first time the rates have been below two per cent since 1694.
According to the bank, "the world economy appears to be undergoing an unusually sharp and synchronised downturn" hence the need to drop the rates in order to prevent a further slide.
Most property investors with tracker mortgages stand to benefit from the move, as the interest rate cut will automatically be passed on to them by their bank or building society.
As a result, a typical £150,000 repayment mortgage will incur a monthly reduction of £46, while those with tracker mortgages worth £250,000 will see a £76 drop.
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UK Mortgages
9th January 2009
In news that may be of interest to property investors, interest rates have been dropped in a bid to counter the effects of the credit crunch, placing them at their lowest level in the Bank of England's 300 year history.
The Bank of England's Monetary Policy Committee voted to reduce the official Bank borrowing rate by 0.5 percentage points to 1.5 per cent, the first time the rates have been below two per cent since 1694.
According to the bank, "the world economy appears to be undergoing an unusually sharp and synchronised downturn" hence the need to drop the rates in order to prevent a further slide.
Most property investors with tracker mortgages stand to benefit from the move, as the interest rate cut will automatically be passed on to them by their bank or building society.
As a result, a typical £150,000 repayment mortgage will incur a monthly reduction of £46, while those with tracker mortgages worth £250,000 will see a £76 drop.
<< Back to News