BANK OF ENGLAND BASE RATE LOWEST SINCE 1694 - January 2009

With the Bank of England’s base rate now standing at 1.5 per cent, the lowest level in the Bank's 314-year history over the next few months three and five year fixed rate mortgage deals should drop below 3.99%. Whilst it currently makes sense to sit on a tracker rate, once these fix deals drop to rates below 3.99% it would be prudent to tie in. With a general election on the cards by May 2010 a change of government could see interest rates hiked up as was the case when John Major, in a desperate attempt to hold onto power, introduced four drops in his last eighteen months of office, only for the new Labour government to increase bank base rate no fewer than six times in its first twelve months of office.