Mortage Customers Relief After Repayment Cost Fell From 4-5%

          Mortgage customers breathed a sigh of relief today as the cost of their repayments fell following the Bank of England’s decision to cut interest rates from five to four-and-a-half per cent.

The news came as a pleasant surprise to UK property owners, many of whom weren’t expecting a decision until tomorrow.

The Bank Of England said in a statement: “Although inflation was likely to rise above five per cent in the coming months, it will then drop back towards the 2% target. Some easing of global monetary conditions is therefore warranted.”

The Bank admitted that money markets had “deteriorated very markedly” over the last few weeks, and that lending for homeowners was hard to come by.

The decisions means that hundreds of thousands of homeowners on tracker mortgages will experience falls in their repayments. A London property owner with a typical £200,000 mortgage will see their monthly repayments reduce by £60. 

A woman from afghanistan is receiving more than £12,000 a month in housing benefits so she and her children can live in a seven-bedroom house in west London. She approached Ealing Council in July when she and her children became homeless. They were placed in a privately-owned seven-bedroom house off Horn Lane, Acton, as the council had no properties that size. The authority said it has a legal obligation to help them.

Tags: mortage, property, uk

Category: Property News