Interest rate cut `will help some struggling borrowers`
10/10/2008
The cut in the UK`s base rate of interest announced earlier this week by the Bank of England`s (BoE`s) Monetary Policy Committee will help some struggling borrowers, an industry body has suggested.
According to the Building Societies Association (BSA), the reduction will assist people who have taken out variable rate home loans.
However, it went on to say that consumers with fixed-rate deals and those linked to money market rates may not benefit immediately because the rates of such mortgages are not determined by the base rate.
The BSA added: "Although [the] news will clearly help those with repayment difficulties, borrowers who still think they might encounter problems repaying their mortgage should get in touch with their lender as soon as possible."
On Wednesday of this week (October 8th), the BoE announced it was lowering interest rates from five per cent to 4.5 per cent as part of an international effort which saw similar action taken in the US, Europe and China.
