quote:

---

A London couple are paying just 1p a month on their mortgage repayments, as part of a lucky minority that secured tracker deals below the bank rate prior to a series of rate cuts by the Bank of England.

When Ben and Nicola Cameron signed up for an interest-only tracker deal in December 2007, it’s unlikely they envisaged paying as little as 1p a month on repayments.

But that is the enviable position they now find themselves in after the Bank of England (BoE) made six consecutive interest rate cuts, beginning in October last year, to bring the bank rate down from 5% to a record low of 0.5%.

The Camerons’ mortgage deal with building society Cheltenham & Gloucester tied their payments to 1.01% below bank rate, which at the time of the deal stood at 5.5%.

Monthly repayments slashed With rates now at 0.5% their monthly repayments have plummeted from £1,500 to zero. They are being charged the nominal sum of 1p as the building society’s computer system is unable to process repayments of zero.

“We feel incredibly lucky, we almost didn't go for it,” says Mr Cameron, whose wife is due to give birth to their first child in June. “We look at our mortgage statements now and they look ridiculous, it’s fantastic.”

Their case highlights the tens of thousands of homeowners who have had their repayments slashed by the series of rate cuts imposed by the BoE in an attempt to stimulate lending.

But while most people who took out tracker deals pegged below the bank rate are still spending hundreds of pounds a month to pay off the capital on their homes, the Camerons’ interest-only deal means they are enjoying a zero interest loan.

Unfortunately for borrowers, below bank-rate tracker deals have since been removed from the market.

---

quote:

---

Originally posted by Twiggy
Dont worry it will be going up eventually

---

quote:

---

Originally posted by CorSRi_BT
Not anytime soon, think of the savings.

---

quote:

---

Originally posted by Twiggy
Dont worry it will be going up eventually

---

quote:

---

Originally posted by Robbo
if it were me then id be using the money save don int pyts to be making addtl capital payments etc

---

quote:

---

Originally posted by Robbo
if it were me then id be using the money save don int pyts to be making addtl capital payments etc

---

quote:

---

Originally posted by Cosmo
Orbbo is like Rainman, great when it comes to numbers but anything else and he is retarded.

---

quote:

---

Originally posted by Leighton
I dont see that as a good thing becuase they will never own the house.

---

quote:

---

Originally posted by Kano
I've got mine fixed for 5 years, cant see the rates staying low for long so didn't want screwed over trying to get another deal in 2 years..

Fingers crossed it was the right move

---

quote:

---

Originally posted by Leighton
I was saying that i dont like that type of mortgage because you never own what you are paying for, would be better to rent because then you dont have to pay for repairs

---

quote:

---

Originally posted by Cosmo
So you've got it fixed at 6% for 5yrs?!!

You can get a fixed 2yr rate of less than 3.5% at the moment, and I honestly cant see interest rates going much above 6% for a long while yet (i.e. way past the 2yr fixed period) as its going to take that amount of time for the country to start coming out of this recession.

---

quote:

---

Originally posted by Stu_22
But what sort of deposit do you need. I got a fixed rate for 3 yeas at 7% but thats 100% mortgage.

God knows what will happen after that

---