AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
(From Guardian Unlimited)
What does the interest rate cut mean to my mortgage?
It depends what type of deal you have. The 56% of borrowers on fixed-rate mortgages can be certain they won't benefit from the cut, while the 36% on tracker deals can be sure they will.
"If you have a tracker rate then it's happy days," says David Hollingworth of mortgage broker London & Country. "That's quite a substantial cut and you will feel the benefit of it from next month's payments ."
If, for example, you are paying 0.5% above the base rate, your interest rate will fall from 5.5% to 5%, knocking GBP35 a month off the cost of a GBP120,000 mortgage.
Those on other variable rate deals - either on …