Yesterday the Bank of England reduced the base rate to 1%. This marks the fifth interest rate cut since October, bringing base rate to a new all time low.

If you are on a tracker mortgage you will get the benefit. And a number of lenders have reduced their Standard Variable Rate, which is the rate you move onto when your initial rate finishes.

Anyone who is on a fixed rate by definition will not benefit from the recent reductions.

However, it’s the cut in rates is possibly unlikely to have much impact on whether fixed rates are likely to fall further. The majority of lenders are now concentrating on improving their margins rather than improving their market share.

This entry was posted on Friday, February 6th, 2009 at 9:01 am and is filed under interest rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.