Bank of England Base Rate Lowered from 2% to 1.5%
The Bank of England announced the new base rate at midday today, a cut of a further 0.5% on last months rate of 2%, brining the new rate down to 1.5%.
This will mean that the UK is now seeing the lowest rate of interest for over three hundred years, and in fact the lowest rate since records began.
This will mean all borrowers on tracker rates will see a monthly reduction in their interest repayments of £41.67 on a typical £100,000 mortgage.
To work out the interest reduction on your mortgage, simply multiply the amount of your mortgage outstanding (the balance) by 0.005, then divide by 12 to give you the monthly reduction.
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