Homeowners’ relief as Bank of England cuts interest rate by 0.25%

BECKY BARROW - More by this author » Last updated at 12:40pm on 7th February 2008

The Bank of England cut the base rate from 5.5 per cent to 5.25 per cent

Becky Barrow, Daily Mail - 7th February 2008

Homeowners received a much-needed boost today after Bank of England policy makers cut interest rates for the second time in three months.

The Bank’s nine-strong Monetary Policy Committee (MPC) voted to trim rates by a quarter-point to 5.25% amid growing signs of a slowdown in the economy and a cooling housing market.

But hopes of a more dramatic cut were dashed, despite calls from retailers for a reduction to 5%.

Some of Britain’s major banks have already responded to the cut, by pledging to pass on the reduction in full.

The move came after home-owners were warned most monthly mortgage payments would not fall even if interest rates fell.

Lloyds TSB, HSBC and Barclays said they would reduce their standard variable rate by the full 0.25% - full article
See Also: http://www.landlordzone.co.uk/bank_rate.htm