National Rate Cut Prompts Local Response

Some Northern Ireland banks are already getting ready to cut their mortgage rates as the national cost of borrowing falls again.

It has been reduced by a full percentage point, pushing the base rate of interest to 2% - the lowest level since September 1939.

The Bank of England's Monetary Policy Committee (MPC) made the announcement at midday, which follows last month's shock 1.5% cut - the biggest in nearly 30 years.

Britain's biggest mortgage lender, the Halifax almost immediately announced it would pass on the cut to its 600,000 borrowers with base rate tracker deals while two of Northern Ireland's 'big four' banks have also said they will be matching the latest cut in interest rates.

The Ulster Bank said this afternoon that all their tracker customers would benefit from the cut, but they are meeting to discuss other financial products.

The Bank of Ireland has said their standard variable rate would fall from 5.49% to 4.49%.

The decision by the Bank of England to cut interest rates again has been roundly welcomed in Northern Ireland.

See: UK Interest Rate Slashed To 2%

(BMcC)