Bank of England reduces Base Rate by 0.25%

[CoverItAll]

Michael Coogan, director general of the Council of Mortgage Lenders, says: "This is good news for those borrowers with mortgages tracking the bank base rate. “But in these dysfunctional market conditions, the base rate is not in itself a good guide to the cost or availability of funds to lenders."

So it will have little or no impact on the terms being offered for new Mortgages or Re-Mortgages - the "Credit Crunch" goes on.

[Emily]

Some people got new reduced mortgage payments from HBOS and Nationwide and others?? Or are they thinking about it?

[size5]

It is to be remembered that whilst a base rate cut is certainly good news for a lot of different people and organisations, in itself it doesn't mean anything in relation to creditors reducing the interest rate that they charge on your mortgage or secured loan, they are certainly not bound to follow suit.

[CoverItAll]

Hi size5

I agree, and many Lenders have already indicated that they will not be reducing their rates.

Until all the fear in the market is dispelled, and the final true impact of the American sub prime mess and subsequent securitisation greed disaster is calculated, as evidenced by the LIBOR rate, nothing will settle down.

I think we must all be in for the long haul.