The impact of last week’s rate cut was great for homeowners lucky enough to have a tracker mortgage, but it’s not all good news as savings products begin to disappear.
When the interest rate cut 1.5% was announced on Thursday and then followed by the news that the government had pressured banks and mortgage providers to cut their rates accordingly, many believed this was the first piece of good news since the credit crunch began.
Tracker mortgages looking good, savings looking down
Unfortunately, it is only those with tracker mortgages that will truly feel any benefit. Many building societies have already begun withdrawing saving products in order to reprice them and it is likely that banks will follow suit.
To save or not to save…
Which Money editor Martyn Hocking said: ‘Savers will have to move quickly to catch the best deals for their savings. While there are still savings accounts offering 6% or more, average rates are set to fall sharply over the coming weeks. The key is to check rates on all your current deals to see if they have been slashed. Move your money to a Which? Best Buy if they have been.’
Which? provides to help you keep on top of your money in these uncertain times.
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