http://www.guardian.co.uk/money/2008...y-house-prices
They are Britain's luckiest mortgage borrowers. In September last year, Cheltenham & Gloucester, the home loan offshoot of Lloyds TSB, told borrowers they could remortgage to a deal set at Bank of England base rate minus 1.01%. Interest rates had been edging up in the wake of the collapse of Northern Rock, so it didn't seem quite so amazing at the time.
But today, after Thursday's extraordinary 1.5% cut in interest rates, anyone who took the deal will be paying just 1.99% interest on their mortgage. That's equal to just £165.83 a month on a £100,000 interest-only mortgage, although rising to £423 on a repayment. It's the lowest pay rate on a mortgage that anyone in the industry can remember - and many predict rates could go even lower.
Ray Boulger of mortgage broker John Charcol said: "If Bank of England base rate were to fall to 1% - and in the US it's already at 1% - then borrowers with this C&G loan could see their pay rate fall to zero, or technically below zero. At that point, the bank would be paying you to have a mortgage."
You lucky lucky people!
I hope you are going to send Brown a thank-you card?
They are Britain's luckiest mortgage borrowers. In September last year, Cheltenham & Gloucester, the home loan offshoot of Lloyds TSB, told borrowers they could remortgage to a deal set at Bank of England base rate minus 1.01%. Interest rates had been edging up in the wake of the collapse of Northern Rock, so it didn't seem quite so amazing at the time.
But today, after Thursday's extraordinary 1.5% cut in interest rates, anyone who took the deal will be paying just 1.99% interest on their mortgage. That's equal to just £165.83 a month on a £100,000 interest-only mortgage, although rising to £423 on a repayment. It's the lowest pay rate on a mortgage that anyone in the industry can remember - and many predict rates could go even lower.
Ray Boulger of mortgage broker John Charcol said: "If Bank of England base rate were to fall to 1% - and in the US it's already at 1% - then borrowers with this C&G loan could see their pay rate fall to zero, or technically below zero. At that point, the bank would be paying you to have a mortgage."
You lucky lucky people!
I hope you are going to send Brown a thank-you card?
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