UK Landlord Forum / Life

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Thousands of homeowners face the prospect of paying no interest on their mortgages after the Bank of England cut the cost of borrowing for the fifth month in a row.

Interest rates were cut by 0.5 percentage points to 1 per cent today in a bid to boost the economy, which has sunk into recession amid a collapse in consumer confidence and a freeze on new lending.

About 1,500 customers who took out a tracker mortgages pegged at 1.01 points below the base rate with Cheltenham & Gloucester (C&G), owned by Lloyds Banking Group, will be paying no interest at all on their home loans from next month.

It is the first time that a mortgage lender has been forced to reduce the interest on their home loans to zero.

Here's a comment from someone reaping the rewards:

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I am loving the cuts! I have a 190k interest only mortgage with the woolwich and am now paying £158 a month split between 2. I have never had it so good, it feels like I'm stealing & at some stage I will have to pay for todays savings, so I'm being cautious... and putting the spare cash aside

Nice

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Yep, i have been one of these peeps for about a month now.  i think i am paying a tenner over the 0%.
Its been great i have brought some nice Paul Smith shoes lol