Falling pound 'may benefit existing self build mortgage holders'

Speculation of another sizeable cut in interest rates has been sparked by the pound suffering its biggest one-day fall in 16 years, it has been suggested.

At the close of trading on December 1st, sterling suffered its biggest one-day fall since 1992 and traders are now predicting another generous rate cut, foreign exchange business FairFX has claimed

Self builders who took out a base-rate tracker mortgage may now be eagerly awaiting the next decision by the Bank of England's Monetary Policy Committee, which will be announced on December 4th.

"All eyes are now on the MPC as traders speculate another rate cut in the 100 basis point region is almost inevitable as policy makers try to revive the economy by any means necessary," FairFX said.

A cut of one per cent may slash more money off the average self buildmortgage, adding to the hundreds of pounds they could be saving from the two per cent worth of rate cuts in recent months.