Sunday, January 25, 2009

UK Interest rates

Interest rates in the UK have been on a downward trend and many homeowners are hoping the relief on their adjusted monthly mortgage payments will support them through any turbulence on the job front. The recession is no longer impending in the UK.. it has certainly arrived.

My own mortgage payment which is on a variable lifetime tracker rate with the Woolwich, came down by almost 35% since last year this time. The product is good in that it allows overpayments without penalty and I think it is sound advice to make as close to your previous mortgage payment as possible if you are able. The additional amount you pay in will contribute toward bringing down the capital you owe on the mortgage and this is much easier to do when the rates are low for obvious reasons.

I'm certainly glad that most banks have passed on the interest rate cuts from BoE to their customers. One can only hope customers use the savings wisely to reduce their debt and not go on a spending spree with the cash that's freed up.

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