With a budget review pending and recent slashes in base rate cuts, I felt compelled to pass on a personal message. In recent months the media coverage of the "Credit Crunch" and the "Property bubble burst" and the property market crash the mood of the nation has been somewhat subdued.
The recent cuts in bank of england base rate have without doubt had an impact on many landlords. The question was, would the mortgage lenders pass on the cuts. Lenders like Northern Rock, Bank of Scotland Birmingham midshires have show a positive action to do so.
A number of people have emailed and asked me how they can find out whether the rate cut will be passed on. Well, as a matter of course, mortgage companies will write and inform you of any changes. For example, Birmingham Midshire are writing out in December to advise of their recent changes to certain products. In their case, the initial correspondence relate to the 0.5% cut and the changes for the 1.5% base rate cut will follow.
The most proactive thing you can do is to call your lender and ask them specifically what the changes are to your mortgage payments. They should be able to give you an indication. Also remember to ask them when this will take effect. Remember there will be difference depending on if you are on a Tracker or a fixed. Fixed rate mortgages won't change. Variables mortgages will but maybe not as much as a Tracker.
So give them a call.
