11
Jan
Rate decision 'costs Brits £105m'
British mortgage holders will pay an extra £105 million per
month as a result of the Bank of England's decision to freeze the
base rate of interest.
In what was speculated to have been a knife-edge decision, the
Bank's monetary policy committee (MPC) yesterday voted to hold
interest rates at 5.5 per cent.
This decision will cost the third of mortgages on tracker rates or
standard variable rates £105 million, Ray Boulger of mortgage
broker John Charcol claims.
However, according to Mr Boulger the recent drop in swap rates
means borrowers can still find a good deal on fixed rate
mortgages.
He explained: "Borrowers who prefer a fixed-rate mortgage should
see lower rates soon, although so far few lenders have reduced
their fixed rates to reflect these lower money market rates."
Analysts are now predicting a cut of 0.25 per cent in the base rate
of interest in February.
