Rates finally come down

Posted on 7 December 2007 by Drew

Be the first to comment

Good news yesterday. The Bank of England finally lowered interest rates much to the pleasure of many mortgage borrowers. Interestingly, what a movement in bank rate does highlight is that being on the right product is so important.

We have for some time now extolled the virtues of tracker mortgages over discount mortgages. Trackers are directly linked to the bank rate and so you will automatically benefit from the full 0.25% cut - about £40/month on a £200,000 mortgage.

On the other hand discounts are linked to the lender's Standard Variable Rate so may not move at all! If this does happen to you then please post a response and vent your frustration. Perhaps another petition coming on...

Categories: Mortgages, Interest rates, Mortgage Lenders, Tracker mortgages, Variable mortgages

Post a Comment

Please keep your comments relevant. Charcol reserves the right to edit or delete comments.

The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and neither John Charcol nor Drew Wotherspoon will accept liability for them.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.