Secured loans customers may benefit from rate cut
08/02/2008The Bank of England's decision yesterday to lower the base rate to 5.25 per cent could be good news for borrowers.
Those with secured loans and a mortgage with a variable interest rate may especially feel the benefit of the monetary policy committee's (MPC) move to make the 0.25 percentage point cut.
According to the Building Societies Association (BSA), many homeowners will welcome this month's decision as they can do more to ensure their repayments are made on time.
"The cut will be particularly welcomed by those taking out a new mortgage and those coming off a fixed-rate product," said Brian Morris, head of savings policy at the BSA.
"It will also provide support to people struggling to afford a home."
Each month the MPC convenes to decide whether the base rate should be increased, decreased or unchanged.
Prior to the current time, it was last 5.25 per cent in January 2007.
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