Bank of England Base Rate Decision!
14th July 2016
The Bank of England have today announced that they are … HOLDING rates at 0.5%.
After much speculation over the past few years that the next move would be upwards, remember Mark Carneys “At the turn of the year” comments, the situation Post-Brexit vote has changed everything and there was an 80% expectation that rates would be cut.
In deciding to keep the Bank Base rate at its current historical low of 0.5% rather than cut further as many expected, the Governor has yet again adopted a wait and see approach rather than immediately delivering on his pledge to help try to boost an ailing, post-Brexit economy.
Whilst this may flummox the markets yet again after his recent speech, it was always the case that August was a more likely time to take action after having garnered more economic data after the Brexit decision.
Should the Governor eventually cut rates by 0.25%, the immediate benefit of such a cut will be felt by those mortgage borrowers with a tracker product who should see their monthly payments reduce by approximately £11.43 per £100,000 borrowed on an average 25-year repayment mortgage or £20.84 if interest only.
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.