Sunday, February 1, 2009
Free mortgages for everybody
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% 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.