Sunday, February 01, 2009

Get ready for the 8p-a-month mortgage as Bank of England prepares to slash rates to 1% | Mail Online

Get ready for the 8p-a-month mortgage as Bank of England prepares to slash rates to 1% | Mail Online: "Some homeowners could see their monthly mortgage payments drop as low as zero this week.

The Bank of England is expected to cut interest rates to just 1 per cent on Thursday, bringing a windfall to those with interest-only tracker loans.

If it does, Cheltenham & Gloucester customers who took out a deal at 1.01 percentage points below the Bank's base rate will be paying no interest at all.

For technical reasons, they will still have to make payments - 8p a month for a £100,000 loan - but the money will be refunded."

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That's a hard deal to beat.

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