interest rate cut

[markh1972]

i have a 93,000 mortgage on a tracker,with todays interest rate cut how much will i be better of a month?

[factor-fiction]

If your mortage is interest only the annual payment will fall by 0.25% of �93,000. That is �232.50 a year or �19.38 per month.
The fall will be less if it's a repayment mortgage whereby you pay off some capital and some interest each month

[markh1972]

ta mate i guessed it would be a round that figure somewhere

[markh1972]

yes just checked it is a repayment

[Buenchico]

According to the analyst on BBC World Service earlier today, banks and building societies are not expected to cut their rates to borrowers.

The view of the experts seems to be that, because of the effects of the sub-prime credit crisis, lenders need to build up their capital reserves. To do this they'll probably be looking at increasing their interest rates, rather than lowering them. All that the 0.25% base rate cut will do is to slightly lessen the increased lending rates which are probably in the pipeline.

Chris

[Buenchico]

Oops! Sorry, I just noticed that it's a tracker mortgage, in which case the rate ought to go down (but I wouldn't be surprised if the lenders find a way round it!). If so, Factor30's figure's are correct.

Chris

[factor-fiction]

Some people won't benefit.
But Markh1972 has a tracker mortgage though so he should get the full 0.25% reduction

[markh1972]

thanks all i had an idea that as its a tracker it should follow the bank of englands base rate