ContractorMoney

Independent Financial Advisors for IT Contractors

Base Rates drop to 1.5%

Published on 2nd February 2009

The drop comes as no surprise to industry professionals and consumers alike, following the 1% cut last month and 1.5% cut in November. However, the decision has been met with mixed reviews as some feel that even lower rates are not having the desired effect in terms of boosting the economy.

Whilst the rate drops will be beneficial to homeowners on tracker mortgages, people trying to move onto or up the housing ladder are being hampered by the lack of lending from banks which are increasingly asking borrowers for unreasonably large deposits. There is concern amongst some that rate drops alone cannot solve the housing issue and that the Government must turn its attention to buying empty properties and buying so called toxic assets from the banks to free up capital so that banks begin lending again.

What's more, many lenders are beginning to employ the collar clauses in homeowner's contracts that prevent tracker rates from falling below a certain level. This could mean that further rate cuts will have little to no impact on people mortgages.

News and Articles

Xmas slowdown ideal time to review pension
At the end of a demanding year Contractors will be preparing for a Christmas break, free from the demands of the client...
Contractors triumph in pre-budget report!
Darling's pre-budget report was released last month to a resounding cheer from the Contractor community...
Income protection - a necessity for Contractors!
Following the Governments new Welfare Reform Act which came into force on 27th October, income protection can no longer be an after thought for Contractors but is now a necessity...

Testimonials

  • The whole process was so quick and easy with no worries...

    Steve Birchall

  • I would have no hesitation in recommending your company to others...

    Nick Williams
More testimonials

Design by Blue Egg Web Agency

Please Note: Financial advice on these pages is given by ContractorMoney, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Services Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Click here for Important Legal Information which should be read. Click here for a copy of our Private Client Agreement. Click here for a copy of our Initial Disclosure Document.

All rights reserved and E & OE.