UK Interest rate cut by 0.5% to 0.25%

worldtraveller

The Bank of England has cut the UK Interest rate by 0.5% to 0.25% this morning.

The Bank of England has announced an emergency cut in interest rates to shore up the economy in the wake of the coronavirus outbreak.

Policymakers reduced rates from 0.75% to 0.25%, taking borrowing costs back down to the lowest level in history.

The Bank said it would also relax capital rules to free up billions of pounds of extra lending power.

BBC News

Bank of England measures to respond to the economic shock from Covid-19

Sailtheworld

I remember the good old days when people used to engage in hand wringing about low interest rates 'but people will start thinking these rates are normal' or 'but what about the mortgage shock when their fixed rate ends?'. Don't hear so much of that now.

Jonbvn

I've been contemplating switching our tracker into a good long-term fix.
I would like to say I saw this coming and decided not to. However, that would be a total fabrication.
Will be interesting to see what the today's budget brings.

silvertooth

Running out of ammunition 

SharkMoney

When will NatWest/Halifax etc reduce 2yr fixed rates? Will they reduce by 0.5%?

ChopperST

SharkMoney said:

When will NatWest/Halifax etc reduce 2yr fixed rates? Will they reduce by 0.5%?

Only their tracker / variable rates will drop in line with the base rate cut.  Banks can offer whatever fixed rates they want.

Biscuiter

Does this also effect personal loans? I need to change my car soon and at the moment rates are around 3%, wondering if I should hold fire if they will drop.

homeless9

Last week I had a fixed rate mortgage approved by Santander for a new build property.....I don't need to exchange contracts until the 6th April.....

If Santander change rates before I exchange contracts will they apply the rate change to my mortgage? or will I need to reapply to get the lower rate?

lisyloo

The rate on your product won’t change.
there will be a new product.
its up to Santander but they may let you change product.
i changed product with first direct from a fix at 5.99% to BOE + 0.49% in 2008, it was a good move.
even if there is a fee it might be worth your while, but it’s up to Santander how they deal with it.

Sailtheworld

homeless9 said:

Last week I had a fixed rate mortgage approved by Santander for a new build property.....I don't need to exchange contracts until the 6th April.....

If Santander change rates before I exchange contracts will they apply the rate change to my mortgage? or will I need to reapply to get the lower rate?

I was in a similar situation with Nationwide. I just gave them a call and asked them to give the better rate instead which they did.

homeless9

Sailtheworld said:

homeless9 said:

Last week I had a fixed rate mortgage approved by Santander for a new build property.....I don't need to exchange contracts until the 6th April.....

If Santander change rates before I exchange contracts will they apply the rate change to my mortgage? or will I need to reapply to get the lower rate?

I was in a similar situation with Nationwide. I just gave them a call and asked them to give the better rate instead which they did.

cool.

I will try to get my broker to ask them to include the 0.5% drop.