The Bank of England cut interest rates yesterday by half a percentage point to its lowest for 315 years.
With UK interest rates at 1.5 per cent, they have not been lower since the Bank was founded in 1694.
More than 4m borrowers with tracker mortgages will see repayments fall again following last week’s reduction in Bank rate but lenders are still making an estimated £120m a month because of excessive margins on new mortgages
The cut follows the sharpest fall in housing prices since the crash during the 90’s with prices falling 2.6% in November