Bank of England Interest Rate Cut
The Bank of England has today announced that interest rates will be cut from 0.75 per cent to 0.25 per cent. This has been introduced as an emergency measure to keep the economy moving, following the outbreak of coronavirus.
This news means that borrowing costs are down to the lowest level in history.
History of interest rates
Interest rates were increased in August 2018 from 0.5 per cent to 0.75 per cent. This announcement is the first cut since August 2016.
From 2008 to 2016, interest rates were at a steady 0.5 per cent.
Mortgage rates are likely to change slightly although this will not be immediate.
If you are on a Variable Rate mortgage then you may soon see a reduction in your monthly mortgage payments. If you are looking for a new mortgage deal then you may have to wait some time for these changes to happen.
It is unlikely that there will be significant drops in monthly mortgage payments as interest rates were already at a very low level.