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**topcasinobonua** · 02-05-2009, 07:30 PM

Bank slashes interest rates by 0.5% to new record low of 1%

By Daily Mail Reporter

Last updated at 12:13 PM on 05th February 2009

The Bank of England has decided to cut interest rates again

The Bank of England slashed interest rates by a further 0.5 per cent today to a new historic low of 1 per cent as it battled with Britain's slump into a long and painful recession.

Last month the Bank's rate-setters had already brought rates to the lowest level in the Bank's 315-year history.

But the majority of lenders have cruelly chosen to ignore the plunging base rate - with many refusing to pass on the recent cuts in full.

Less than 30 per cent of lenders passed on last month's half-point cut, according to the financial information firm Moneyfacts's research.

There is better news for the majority of customers with tracker mortgages, as these should automatically fall in line with today's reduction.

However, around 300,000 customers with these deals will not benefit from the cut, as so-called collars have already kicked in on their loans, so the rate they pay cannot fall any further.

Nicholas Leeming, director of propertyfinder.com, said: 'Today’s rate cut will have a limited impact on lucky homeowners locked into tracker mortgages.

02-05-2009, 07:30 PM	#1
topcasinobonua Join Date Oct 2005 Posts 502 Senior Member	BOE slashes interest rate to 315yr low. Bank slashes interest rates by 0.5% to new record low of 1% By Daily Mail Reporter Last updated at 12:13 PM on 05th February 2009 Comments (0) Add to My Stories The Bank of England has decided to cut interest rates again The Bank of England slashed interest rates by a further 0.5 per cent today to a new historic low of 1 per cent as it battled with Britain's slump into a long and painful recession. Last month the Bank's rate-setters had already brought rates to the lowest level in the Bank's 315-year history. But the majority of lenders have cruelly chosen to ignore the plunging base rate - with many refusing to pass on the recent cuts in full. Less than 30 per cent of lenders passed on last month's half-point cut, according to the financial information firm Moneyfacts's research. There is better news for the majority of customers with tracker mortgages, as these should automatically fall in line with today's reduction. However, around 300,000 customers with these deals will not benefit from the cut, as so-called collars have already kicked in on their loans, so the rate they pay cannot fall any further. Nicholas Leeming, director of propertyfinder.com, said: 'Today’s rate cut will have a limited impact on lucky homeowners locked into tracker mortgages.
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