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Once again this week the Bank of England have decided to reduce the base rate of interest by half a percent, seeing it being lowered from 5.00 to 4.50% immediately. The decision was made in response to all the major banks across the globe, who also decided to decrease their base rates by the exactly the same amount.
In the United States the Federal Reserve slashed interest rates to 1.5%, in addition to the European Central Bank bringing their rates down to about 3.75%. Although this comes across as complete doom and gloom it is far from it as, the housing market in particular will appreciate this move. They have been requesting a rate cut for quite an extensive period of time, alongside homeowners who may very likely experience a decrease in the cost of their homeowner loan.
However this reduction will only apply to those homeowners, who are not on a fixed deal and whose lenders pass on the savings.
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