Rates finally come down
Posted on 7 December 2007 by
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...
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