BASE RATE REACHES ALL TIME LOW

05 March 2009

The Monetary Policy Committe have anounced a further cut in the Bank of England Base Rate today, from 1% to a new all-time low of 0.5%.

Whilst this is good news for those existing borrowers on tracker rates it is questionable as to whether it will have any impact on new deals available in the residential, buy to let or commercial mortgage markets as the LIBOR (London Interbank Offer Rate) has stagnated recently at just above 2% and is unlikely to be effected greatly by this latest cut.

We will now have to wait and see whether this latest cut will help to ease the UK out of this current recession or whether the Government will have to consider alternatives actions.