Mortgage rates set to be cut again after Bank of England decision
Interest rate cut to affect those on adjustable mortgage rates.
Borrowers with tracker and adjustable mortgage rates will benefit from today's decision to reduce the base rate of interest by 0.5 percentage points.However, those with a fixed rate mortgage will see no benefit whatsoever from the decision.
The Bank of England's monetary policy committee has announced it voted to cut the official bank rate paid on commercial bank reserves to 0.5 per cent.
England's rates are now at their lowest level since the central bank was formed in 1694.
Today's decision will have little positive effect on the economy as a whole, according to Fairinvestment.co.uk.
"The gap between the rate at which banks will lend to each other (Libor) and the base rate needs to close before more impact can be felt in the mortgage market," it said.
It was also revealed that the Bank of England will begin pumping new money into the country's failing economy as it kicks off the controversial policy of quantative easing with a £75 billion asset purchase programme.
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