Bank of England Reduces Bank Rate by 0.5 Percentage Points to 1.5%

[Cracking Media]

Another ½ per cent cut! How far will it go down?!

http://www.bankofengland.co.uk/publi...s/2009/001.htm

[openmind]

It could, in theory, go to 0% but I think that's unlikely. It is all relatively pointless though if the reductions are not passed down the chain by the banks and mortgage lenders...

[accountantpete]

It does not mean that the Pound here in Britain,in your pocket,in your purse or bank has been devalued.

[Cracking Media]

So if you have spare cash from the cut in your mortgage should you splash it on a holiday or over pay on your mortgage?

[temi]

I think this is a mixed blessing, on the one hand I am pleased for domestic reasons such as mortgages etc, on the other hand I buy loads of services abroad, this latest cut will make the pounds weaker still, that aspect of it I am not very pleased about.

[accountantpete]

So if you have spare cash from the cut in your mortgage should you splash it on a holiday or over pay on your mortgage?

Depends on how much you will want a holiday when the rainy season,aka our summer,arrives or what the cost of a foreign holiday will be then.

You should check on any penalties for overpayment - many lenders will let you overpay but only up to a fixed amount every month so it does make sense to make use of this facility whilst interest rates allow you to do so.