An overflowing number of homeowners have less mortgage repayments to worry about. The Bank of England cut its official interest rates that resulted to reduced monthly mortgage payments. Tracker mortgages decreased as the interest rates plunged to 0.25pc from 0.5pc. Borrowers instantly see a cut in their mortgage costs. According to official data, borrowers with Bank Rate trackers are around 1.5 million while 3.5 million others have different variable-rate mortgages.
Mortgage Cost Fall is not for Everyone
Although bank rate cut means lesser monthly payment for borrowers with tracker mortgages, it does not hold true to everybody. Director of mortgage broker Coreco, Andrew Montlake, states that the reduction of bank rate does not automatically mean lower mortgage cost and that it does not necessarily apply to every borrower.