Bank of England

Interest rates on two different Santander products have been cut this week as customers continue to wonder whether the bank is preparing to reduce the headline rate on its flagship 123 current account from 3% to 2%.

The prospect of banks charging personal customers for holding their savings remains unlikely, despite a warning by Royal Bank of Scotland (RBS) and NatWest to business and commercial customers that negative interest rates could become reality.

The Bank of England today kept the base rate at 0.5% – despite widespread predictions that it would cut the rate for the first time in more than seven years.

Over 10 million Barclaycard credit card customers will have their interest rates linked to the Bank of England base rate from February next year, while the same is also happening for some Lloyds Banking Group customers.

Interest rates may not rise until 2017 the Bank of England has suggested this month, but mortgage borrowers should still consider switching to a cheaper deal now, with rates near all-time lows.

House prices rose to a record high of £205,000 on average in October, Halifax has reported today.

Interest rates could begin to rise from their historic lows at the turn of this year, the Bank of England Governor predicts.

About 167,000 homeowners, including 71,000 pensioners, who are struggling to pay their mortgage will see their mortgage benefit payments fall by a typical £756 a year from next month.