Bank Cuts rates to 5.25%

Bank of England has cut rates in an attempt to keep the economy moving. The US Federal Reserve has recently cut rates from 4.25% to 3%. Anyone looking to remortgage can expect to get a better deal especially some one with a bad credit mortgage.

It will be a welcome cut for homeowners and anyone arranging a first time buyer mortgage as energy prices are increased, and Council Tax rates are set to rise in certain areas of the country.  

The Woolwich is one of the first big Lenders to announce it will be cutting its Standard Variable Rates (SVR) by the full 0.25% following the Bank of England’s announcement. This has an effect on anyone on a base rate tracker mortgage.

A further cut is likely, inflation will be watched closely. It currently stands at 2.1% but rising energy costs and food prices are expected to push the inflation up further past the 2% target.