BBR cut by 1% to 2% - News on products 05.12.2008

Author: David Whittaker Posted on: 05 December 2008

The original expectation of a 0.5% cut in BBR moved ever closer to 1% as more economic data became available over the month of November. Some were even calling for a 1.5% cut down to 1.5% but the downside risk on sterling which is already heavily battered was deemed to be too high.

The biggest surprise was Halifax removing its 3% "collar" on its tracker rates thereby allowing some 550,000 mortgage borrowers to feel the full benefit of the 1% cut. The Halifax made its announcement before the BBR reduction and can probably feel justifiably slighted that the media gave much credit to Nationwide following suit later in the day. On the assumption that other lenders with "collars" follow suit then some 800,000 boroowers will benefit in total !!

The C&G have already announced a new range of products to be launched on Monday but have stated that a 2 year fixed rate of 3.89% will be available - we will know the fees on Monday! But nonetheless a good start and other lenders will follow this lead in the coming days.

When we can see some Best Buys we will let you know but do ensure you are on our database for product alerts.