Subscribe Feed (RSS)Clients Save Upwards Of £500 A Month As Interest Rates Are Cut
December 4th, 2008 by Karelia | No Comments | Filed in Property Market NewsMusings of a London Property Search Agent
The latest interest rate cut announced today by the Bank of England (BoE) means great news for homeowners with BoE variable rate tracker mortgages. Variable rate mortgages based on the Bank of England base rate have been cut drastically in the last 3 months as the Bank of England base rate tumbled from 5% in September 2008 to just 2% from today.
Mortgage lenders generally take a few months to pass on the rate but as from the early part of next year, many borrowers should see significant savings in their mortgage payments. The table below provides an idea of the savings on a typical 25 year term BoE base rate tracker mortgage on a capital and interest basis, excluding fees and where the lender passes on the full 3% base rate cut to the borrower. Not everyone will benefit however, as many mortgages have a collar below which base rate cuts are not passed on.
Clearly the most significant savings are for those on large variable rate mortgages which is great news for our Clients as like many London Property Finders and Relocation Agents working in the mid to top end, a significant proportion of our clients will be saving upwards of £500 a month.
| Mortgage sum | Monthly Saving | ||
| £100,000 | £171.15 | ||
| £200,000 | £342.30 | ||
| £300,000 | £513.45 | ||
| £400,000 | £684.61 | ||
| £500,000 | £855.75 | ||
| £750,000 | £1,283.64 | ||
| £1,000,000 | £1,711.12 | ||
All figures supplied by Piero Mazzoni of The Porchester Group Limited. You can contact him for mortgage advice on 020 7529 1980 or email him Piero.Mazzoni@porchestergroup.co.uk
http://www.porchestergroup.co.uk/site/home/
This summary is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking action on the basis of the contents of this summary. The summary represents our understanding of the law and Bank of England base rates as at 4th December 2008, which are subject to change on a monthly basis. All mortgages are subject to status and to suitable security. If you are ready to buy contact the London Property Search Agent
Tags: Bank of England Base Rate, Bank of England Interest Rate Cuts, Interest Rate Cuts, London Property Search Agent, Mortgage Interest, Reduction in Mortgage Repayments
