It was a shock announcement that came from the Bank of England earlier this week, in that interest rates were going to be dropped with immediate effect amid the Coronavirus outbreak
The World Health Organisation has officially named Coronavirus to be a pandemic and the, in many cases fatal, virus has shook markets all over the world, wiping billions off economies and creating panic.
As a result, and to provide some support to both businesses and individuals in the country, the Bank of England made an announcement first thing on 11th March that it was cutting the Bank of England Base Rate by 0.5%, taking the rate from 0.75% to just 0.25%. This is also the first time the Bank of England has actually reduced the rate since August 2016.
The decline in the markets is hitting pension schemes as well as individuals’ savings and investments and so families will no doubt be seeing the effects already. Not only this, but the way in which different businesses have been or will continue to be affected will be having an impact on people’s employment and employers will be seeing the loss of staff to the illness going forwards as more people want to self-isolate for the want of keeping the risk of further infection at bay.
Historically, there has been criticism over Banks failing to pass on the cuts in interest rates to customers however this time has been different and banks have passed on the cut to those on mortgage their mortgage products.
For customers on Variable Rate or Tracker Mortgages, they will see the drop on the monthly mortgage repayments and this is hoped to provide some financial comfort to those who may have been impacted by the Coronavirus financially.
If you’re unsure as to where you stand with your mortgage payments and how Coronavirus might impact on your financial situation why not speak to one of our Mortgage Advisors. A Mortgage Advisor can help you find out if you’re in a position to be able to save money on your monthly mortgage repayments or if you’re entitled to a payment holiday. Why not give the team a call on 03333 44 85 11 or email enquiries@onlinemortgagecalculators.co.uk and a member of the team will be in touch shortly.