Will the Bank of England interest rates cut be passed on?
07 November 2008
After the Bank of England cut interest rates to a 53-year-low yesterday, many will be wondering what the effect on their lives will be and whether the cut will help ease the financial strain most are feeling.
Homeowner Bridgette Bodle told the BBC that she and people in her office had been hoping for a half per cent cut so the one and a half per cent cut was a "real relief".
She said: "It will work out as about an extra £50 in my pocket, which can mean the difference between losing your house and keeping it."
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After her husband lost his job as a driver and the mortgage repayments on their home rose by £80 each month, the interest rate news could help Ms Bodle be more financially stable.
However, Tom Sheridan, Managing Director of a house-building company, told the broadcaster that the cuts could be "too little too late" and said it was very difficult to be positive about 2009.
Banks and other lenders are being urged to pass on the interest rate cuts to struggling customers but it has been widely reported that many seem to be unwilling.
