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It seems astonishing that only some 12 months ago the rumour was that interest rates were going to go over 6% and here we are now with the lowest rates since the 50’s, when frankly very few people had mortgages.
Now we have a mortgage rate of 2%, but does it have the power it did in the 80’s. I have blogged before about the increasing numbers of people who have fixed rate mortgages to provide certainty in their repayments. For them this will not come as any sort of relief from the recession. One only hopes that the banks now get their act together so they start to offer better fixed and floating rates to enable those coming off fixed rates to have more disposable income.
BBC NEWS | Business | Bank cuts interest rates to 2%:
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