W Bromwich society follows Abbey move
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE small West Bromwich Building Society has followed the Abbey National and postponed its mortgage rate cut scheduled for 1 November, in favour of a larger cut in December.
The rate comes down from 10.7 per cent to 9.6 per cent rather than 9.99 per cent.
This brings down the monthly payments on a pounds 50,000 endowment mortgage from pounds 378 to pounds 339 - a saving of pounds 39.
Glenn Elliot, chief executive of the society, which is ranked at 22 in the league of building societies and has 39,000 borrowers, said: 'We are confidently anticipating that the Chancellor will cut the base rate. The money markets have been discounting a cut of at least 0.5 per cent for some time. It's true we have gambled on a rate cut, but it's a pretty good gamble.'
He added that the move to lower mortgage rates was a contribution to stimulating the housing market.
Savers' rates are not coming down yet.
No other lenders have yet followed the Abbey National. Most would rather wait until a base rate cut materialises. They are all watching each other to see if there is going to be a general move ahead of a base rate cut.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments