The Bank of England has today cut interest rates by a further 1%. This means that the base rate of interest is now at 2%, which is the lowest level it has been since 1951.
So, for anybody who is on a base rate tracker/discounted mortgage then you will start to see even further reductions in the amount of interest you are paying on your mortgages.
Let’s hope that the banks also apply the 1% reduction to their standard variable rates as well, passing on the benefit to a much wider audience.
Those who won’t benefit from this interest rate reduction are the ones who are on fixed rate deals and, of course, the savers who are debt free. Any interest rate deduction for savers means they earn less on their money. Continue reading