Bank of England Lowers Base Rate to 1.5% 08/01/2009 by admin
The Bank of England has lowered the base interest rate to 1.5%. This is good news for consumers with variable rate mortgages but comes as bad news for savers as returns continue to get poorer.
Although base rate has fallen to an unprecedented low, fixed rate mortgages and tracker mortgages are still priced significantly higher than the base lending rate.
As property values continue to fall, more and more consumers are finding it harder to secure the best mortgage deals in the market that are available only up to 75% loan to value and in some cases 60% loan to value.