Mortgage costs in Newington Green are set to fall after the Bank of England cut interest rates for the first time in more than seven years.

The move, which saw the BoE base rate drop from 0.5% to 0.25%, was part of a £170bn package of measures designed to prevent a recession following the Brexit vote.

The decision to cut interest rates was approved unanimously by the nine members of the Monetary Policy Committee and has opened the door to lower mortgage rates.

After announcing the new base rate, BoE governor Mark Carney said there was scope to cut the interest rate further.

He said that majority of MPC members backed further cutting the interest rate if subsequent data shows the economy is deteriorating.

Mr Carney said banks have “no excuse” not to pass on the lower borrowing costs to customers and will be charged a penalty if they do not lend.

He added: “The MPC is determined that the stimulus the economy needs does not become diluted as it passes through the financial system.”

The MPC meeting on Thursday 4 August was the last before it moves to only meeting eight times a year, meaning that it is not scheduled to meet again until 3 November.

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The Telegraph