By Macer Hall
HOMEOWNERS were last night given hope that mortgage rates will stay at a record low for the next three years - and could even be cut further within months.
City experts forecast that the Bank of England cut will mean a fall in monthly payments for the estimated three million households with mortgages above 0.5 per cent until mid-2015.
borrowers could save an average of £200 a year if rates follow the forecast of Vicky Redwood, chief UK economist of Capital Economics, who predicts a 0.25 per cent cut in the key interest rate "in November". She said: "The door is clearly open to more stimulus."
A cut will mean a fall in monthly payments for the estimated three million households with mortgages that track the base rate.
The forecasts follow a gloomy assessment of the economy from the Bank of England yesterday. In the quarterly inflation report bank chiefs cut the growth forecast for this year and next as the country struggles with the double-dip recession.
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