In a dramatic response to the economic impact of the Coronavirus the Bank of England have announced a drop in the base rate from .75% to .25%.
This shock announcement is perhaps a sign of what is to come and the extent of the impact the Banks and Government will now be bracing for.
With thousands of homeowners still in negative equity and in difficulties from the fallout of the last crash in 2008 the country has struggled to fully recover. Another recession would be catastrophic!
This drop in the interest rate will benefit those on tracker rate mortgages and those on variable rates may see benefits too if their lender is to pass on these savings. Those who secured a fixed rate mortgage will not see any benefit.
The Bank will have taken this action in an attempt to save and balance the economy.
Encouraging cheap borrowing rates will support spending and growth with many businesses and households whilst adding to the economy in these difficult times.
Savers will be adversely affected as they see interest on savings fall.
If you are concerned about the value of your property or negative equity get in touch via our contact page on call us on 028 9600 9621.
