It would be impossible to miss the news on the Fed’s interest rate cuts, pushing them down to a historical rate of between 0 and 0.25%, resulting in the cost of borrowing being the cheapest it has been in living memory. However, what we really want to know is, how does this change affect us? Most people’s biggest sum of debt comes from their mortgages, so the biggest effect a change in the Federal Reserve’s interest rate is most likely that of a change in the size of mortgage repayments. It is important to understand what type of mortgage you are on before you can consider what effect the change will have on your repayments. Continue reading

It would be impossible to miss the news on the Fed’s interest rate cuts, pushing them down to a historical rate of between 0 and 0.25%, resulting in the cost of borrowing being the cheapest it has been in living memory. However, what we really want to know is, how does this change affect us? Most people’s biggest sum of debt comes from their mortgages, so the biggest effect a change in the Federal Reserve’s interest rate is most likely that of a change in the size of mortgage repayments. It is important to understand what type of mortgage you are on before you can consider what effect the change will have on your repayments. Continue reading