According to an industry expert people with commercial mortgages could enjoy some good news, as it has been predicted that in the coming months interest rates could fall to as low as 2.5 percent. One industry experts has said that it is likely that the Bank of England will soon cut the base rate by a further 0.5 percent, following cuts adding up to 2 percent over the past two months.

This could see repayments on mortgages slashed for many, which will come as a relief to those that have been struggling to keep on top of their finances as a result of soaring inflation, rocketing bills, and sky high living costs. He added that judging from the latest Bank of England minutes it looked as thought the base rate would be cut sooner rather than later, which means that consumers will be able to enjoy seeing the cost of their mortgage repayments coming down.

Inflation has now dropped down to 4.5% after soaring over recent months, and the fall in inflation levels gives the Bank of England more scope to cut the base rate. Between August 2006 and July 2007 the base rate went up five times, soaring from 4.5 percent to 5.75 percent, and this left many struggling to keep up with mortgage repayments. Many homeowners have had their properties repossessed in this period because they have been unable to keep up with mortgage repayments.

It is hoped that the ongoing interest rates will help to provide stability to the finances of consumers that have found it hard to cope financially, Whilst the rate has already come down, leaving consumers with more money, it is thought that many will still be cutting back on their spending levels over the course of this Christmas so that they can try and put some money aside to help them through this financially challenging time.

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