So, you may have heard that interest rates have been cut by 0.5% today, in an announcement that was made a day earlier than expected.
How has the rate cut affected your mortgage? Recent research showed that many people do not have a clue what mortgage they actually have, including what rate they pay, so do you know what has happened to your mortgage today? Has your lender passed on the rate cut yet? Are you on a tracker rate which will have to follow the cut?
I know what’s happened to ours – absolutely nothing, as it’s fixed at 5.19% for another 3 years. It’s kind of frustrating when rates go down because I know we’ll see no reduction in our mortgage payments, but it’s also quite reassuring in these turbulent times to know exactly what we’ll be paying each month. Also, the rate isn’t massivley above the base rate, so I really can’t complain.
You can use our mortgage repayment calculator to find out how a cut in interest rates will change your payments, and also our overpayment calculator to see what savings you could make by overpaying your mortgage.