11-01-2008
Homeowners offered post-interest rate decision advice
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
UK-based homeowners have been offered borrowing advice following the Bank of England's decision yesterday to keep interest rates on hold.
The Motley Fool has issued a warning, advising mortgage holders that there is no legal obligation for mortgage lender to pass on any interest rate changes to consumers. Yesterday the Bank's monetary policy committee opted to keep interest rates on hold at 5.5 per cent.
"It is quite sweet of Mr. Darling to be concerned about mortgage payers," said David Kuo, head of personal finance for the Motley Fool. "But it is also quite wrong of him to fill homeowners with empty hopes that rate cuts by the Bank of England will trickle into their pockets."
The organisation believes that unless a borrower has opted for a mortgage that specifically tracks the Bank of England's base rate, the mortgage-borrowing public may not benefit from any future reductions in the cost of finance.