Despite today's Monetary Policy Committee's (MPC) decision to drop the base rate to 1.5%, key industry figures remain sceptical that the cut will have a major impact on mortgage deals.
The MPC's latest action follows the news that just a fraction of last month's Bank of England (BoE) rate cut was passed on to borrowers, according to the latest analysis from financial services research provider Defaqto. The firm's analysis of just over 1,000 current deals shows that instead of passing on the 1% cut, mortgage lenders lowered the average fixed deal from 5.76% to 5.62%, a cut of just 0.14%. The largest cut was seen on two-year fixed rate deals at 60% loan-to-value (LTV), which fell by 0.32% after the rate cut. In contrast two-year deals at 75% LTV dropped by just 0.6% over ...
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