Bank rate is cut to 1.5%
Bank rate has been cut by 0.5% as expected and now sits at 1.5%.
Borrowers on existing trackers will see the effect within the next 30 days largely. I expect there to be more news about which lenders are imposing their collars, so keep reviewing the clients you have seen in the last 6 months for re-mortgages, who might have hit a floor on their rate now. It’s important to check the offer documents the client had originally to see if the collar refers to their pay rate, or to Bank Rate. (My own collar notes are attached- might give a clue to specific lenders.)
Whilst the margins on new tracker rates are likely to be increased to keep up, few lenders have acted yet, hopefully there won’t be the normal rush. That said, submit any tracker business you sign up immediately please, we don’t expect any notice on rate withdrawals.
- Northern Rock have not changed margins on their range – but have extended the end dates to 1st March.
- C&G have removed their trackers from the market, new ones to be announced soon.
- Bank of Ireland have withdrawn from the Intermediary market all together, please have all business in by 5pm 9th January.
We’ll keep an eye on changes to SVRs and keep you informed accordingly.