People looking for a new mortgage in the UK may have been very pleased by the recent announcement by the Bank of England regarding the base rate interest cut of 0.5%.

A drop in the base rate may result in lower mortgage rates, potentially saving people money. This may well make this a good time for some people to join the mortgage market, and perhaps make the first step on the property ladder.

Think Money Mortgages discuss a BBC report stating that Woolwich may be intending to cut their standard variable rate, and similarly so with Halifax and Lloyds TSB.

People with existing, fixed rate mortgages (mortgage rates that don’t change in relation to the base rate) won’t see an improvement. However people looking for a new fixed rate mortgage might find lower rates in the future.

There has been a raft of measures worldwide to stabilize the world banking and mortgage markets. Homeowners may be wise to take stock of recent developments and seek mortgage advice before making a decision.

Popularity: 50% [?]