Todays’ historic Mortgage Rate cut has taken the Uk mortgage base rate to 1.5%

But will it have any effect on us the little people I hear you ask.

Many industry experts expect the todays cut to have very little - if any - effect at all on mortgage borrowing.

This is for two reasons.

1) Mortgage rates are so close to the level that mortgage lenders can effectively lend the money and still make a profit. This means that many mortgage lenders still have not passed on the previous rate cuts and there is little evident to suggest that this will change.

2) House price is still VERY high and with lenders demanding a much higher deposit ( upto 25% for the cheaper deals ) many first time buyers simply cannot affoard the depost. Even some remortgagers are now in a sticky wicked with many dropping into negative equity with their fixed rate deal finishing.

Finally I read in the paper Gordon is considering following Mugabe’s lead in fiscal management.

Good work Gordon.

More updates to follow as the news breaks

TTFN

BB