Bank of England Base Rate cut by 0.5% to 1% - 05.02.2009

Author: Michael Aglony Posted on: 05 February 2009

As expected, the Monetary Policy Committee(MPC) reduced rates again today to a new low of 1%. Great news for those of you with Base Rate Tracker mortgages (without a collar in place!) but not so good news for savers who have already seen a 75% reduction in the return on their savings since rates began to fall.

In view of the affect on savers, it is unlikely that we will see much of a fall in mortgage rates. Whilst some of you may be holding out for lower fixed rates, now is the time to act. Fixed rates look appealing today on  residential fixed rate mortgages  - as low as 2.29% (1 year fixed) and 3.19% (2 year fixed).

With regards to Buy to Let and Buy to Let fixed rates  it's still possible to secure some good rates such 3.49% (1 year fixed); 4.49% (2 year fixed), 4.79% (3 year fixed) and 5.24% (5 year fixed).

Please don't lose out by holding out too long as fixed rate mortgages are certainly the way to go and the rates won't be around too long in this current climate.