More to come says Charcol
Ray Boulger, senior technical manager at Charcol, said: “Following the Fed’s half point cut on Tuesday [6th] and sharp movements in money market rates over the past fortnight…[the] cut was expected – the only question was by how much.”
“As things stand it would be surprising if rates did not fall further, especially as Sir Edward George has pledged to cut rates as far as is necessary to avoid a recession. We anticipate at least one more quarter per cent cut in the first half of next year.”
Charcol warn that even though the rate cuts have meant that mortgage repayments have fallen significantly, borrowers should still choose products that best suit their individual circumstances.
“We have now seen 2 per cent scalped off rates this year alone, meaning someone on a £100,000 interest-only mortgage, either with a tracker or with a lender passing on the 2 per cent cut in full will be paying £166.67 per month less on their new rate than at the beginning of the year, an annual saving of £2,000,” said Boulger.