It’s 2007, and mort­gage rates start a 77pc plunge

The Daily Telegraph - Your Money - - FRONT PAGE -

It was in­con­ceiv­able a decade ago that in­ter­est rates would fall so far and for so long. Now bor­row­ers and savers must ad­just to a re­ver­sal, says Amelia Mur­ray

1.31pc, which was raised to 1.4pc weeks later.

York­shire Bank then stepped up with a com­pa­ra­ble ac­count of­fer­ing 1.5pc and Vir­gin Money in­tro­duced a new one-year Isa that paid 1.51pc.

In the past few weeks we’ve seen Char­ter Sav­ings Bank’s pay­ing 1.65pc, trumped by Vir­gin Money of­fer­ing 1.71pc, and then taken over by Char­ter Sav­ings a week later with an ac­count pay­ing 1.72pc.

Dur­ing the same few weeks Char­ter Sav­ings Bank’s mar­ket-lead­ing

which paid 1.7pc, was pushed to sec­ond place by a new 40-month Isa from York­shire Bank of­fer­ing 2.2pc. This has now been with­drawn and the top rate is from Coven­try Build­ing So­ci­ety at 2pc. At the start of Septem­ber the top paid 2.15pc. Now Vir­gin Money of­fers 2.4pc.

three-year Isa, two-year Isa, five-year Isa easy-ac­cess

The range has seen lit­tle move­ment since June when Ul­ster Bank, the North­ern Ire­land arm of RBS, in­tro­duced a new ac­count that paid a top rate of 1.25pc.

At the end of Septem­ber there was a slight in­crease when Char­ter Sav­ings Bank in­tro­duced a new ac­count of­fer­ing 1.26pc – and weeks later RCI Bank be­gan pay­ing 1.3pc.

The top easy-easy ac­cess ac­counts now pay al­most 10 times the av­er­age.

At the end of Au­gust, Atom Bank, the mo­bile-only provider, launched a mar­ketlead­ing range of sav­ings bonds that of­fered the high­est rates since March.

Atom’s one, two and three-year fixed deals paid 1.95pc, 2.1pc and 2.25pc re­spec­tively. Its five-year bond u d ddi

It was the year Tony Blair and his fam­ily left Num­ber 10; flood­ing en­gulfed many English towns; and the Spice Girls came to­gether again for their first tour in eight years. But 2007 was also the last time Bank Rate was in­creased

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