Charcol says more cuts and collars on the way

Professional Adviser
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Mortgage intermediary Charcol has reacted to yesterday's rate cut by the Bank of England by stating i...

Mortgage intermediary Charcol has reacted to yesterday's rate cut by the Bank of England by stating it sees a further 0.25% cut in the near future, which is likely to exacerbate the problem of collars on tracker mortgages. The cuts since the start of the year have already shaved £2,000 in annual payments off the typical mortgage worth £100,000, but this is leading lenders to set limits on how far they are willing to allow mortgage rates to follow the base rate down. "[Some Societies] have already imposed collars on some or all of their discounted rates and as rates drop further bor...

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