MPC may consider 'big cut' - buy to let mortgages

05 November 2008

Holders of buy to let mortgages may be pleased to hear that there is a chance of the Bank of England's monetary policy committee (MPC) slashing the base rate by more than half a per cent tomorrow.

This is according to the findings of the latest Reuters poll on the subject, with one in three of economists and institutions surveyed by the agency suggesting the base rate may be reduced by one per cent when the MPC announces the outcome of its monthly meeting on Thursday.

Such an outcome would mean the base rate would fall to 3.5 per cent and could mean the costs of some mortgages are lowered.

Chief UK economist at Deutsche Bank George Buckley told the news source: "The risks are skewed towards a larger cut, particularly given that at these levels interest rates are still too high for current economic and financial conditions."

Last month the MPC announced a 0.5 per cent cut a day earlier than expected, with all nine members voting that this was the best course of action.