From This is Money:
The gap between mortgage winners and losers is at its widest in living memory after Thursday’s cut in the Bank of England’s base rate.
The winners are those borrowers whose mortgage interest now costs next to nothing each month – or even nothing at all.
These lucky families are hundreds, and sometimes even thousands, of pounds a month better off.
The losers are those borrowers still servicing mortgages at interest rates of six, seven, eight or even 9% and who find themselves unable to switch to a cheaper deal.
Some experts say the divide between mortgage haves and have-nots – which they call ‘mortgage apartheid’ – is a feature of a dysfunctional market and they believe the trend will intensify.
‘The mortgage winners are those who took advantage of extremely generous deals offered at the height of the mortgage boom in 2006 and 2007, where the rate they pay is linked in some way to the base rate,’ says mortgage analyst David Hollingworth of broker London & Country, based in…
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