Lenders React To Possible Base Rate Cut

Lenders React To Possible Base Rate Cut

Selling GPEA 2nd August 2016

Lenders react to possible base rate cut

All eyes were on the Bank of England this week, following widespread speculation of an impending cut in the Base Rate - the first since March 2009. 

The Monetary Policy Committee has however voted 8-1 to leave rates unchanged, opting to wait until August’s inflation report before taking any action.

A number of lenders, including Halifax and Santander, have already withdrawn or increased their tracker rates over the last few days. In some cases the increases have been nearly 0.50%.

This certainly suggests that lenders believe the Bank of England is preparing to cut Base Rate very soon, and are looking to protect their margins. 

A drop in base rate will of course benefit homeowners who already have tracker mortgages, and would immediately see a drop in their monthly payments.


Guild Mortgage Service, Provided by London & Country Mortgages

logo

 

2021 © Townbridge Estate Agents. All rights reserved. Terms and Conditions | Privacy Policy | Cookie Policy | Complaints Policy

Registered Company Name: Townbridge Estate AgentsRegistered in: England & Wales | Company No: 07455315 Registered Office Address: 1 St Michaels Way, Middlewich, Cheshire, CW10 9DX

Book a Property Valuation