Carney considers base rate cut

The Bank of England's base rate could fall below its historic low figure of 0.5%, governor Mark Carney has hinted.

It was widely believed that interest rates would go up rather than down, but Carney's latest announcement means that those taking out mortgages and other borrowers may get even better deals if the recovery keeps faltering.  

The global economic recovery is looking increasingly fragile, with oil prices collapsing and fears that Britain may into a damaging "deflationary spiral", meaning that wages and prices could fall and people may stop spending if they were to believe goods and products would be cheaper in the future.

This may be good news for those looking to get a mortgage or remortgage. However, it's important to remember that the fees you may pay may mean that even in the long-term remortgaging may not be worth the initial cost; even if rates are low.

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The Mirror