Base Rate Cut

The Bank of England has announced a 50 basis point interest cut, reducing the base rates from 5% to 4.5%.  This is welcome news and I do expect a further 50 basis point cut to follow soon.

However, as welcome as this news it will have no impact if the interest rate cut is not passed on to mortgage customers.   Banks will face a barrage of bad publicity if they don't.

Let's see what happens...

1.30pm Update - Halifax and Lloyds TSB have announced a half point cut in the standard variable mortgage rates.  That is good to see.   No announcement from Northern Rock as yet.  Surely the 'government owned' mortgage provider has to follow suit...