“Lenders have learned their lessons”

A number of Brits are paying monthly mortgage repayments of just 1p after the Bank of England’s recent rate cuts.

A couple, who are paying 1p a month for their mortgage said: “Cheltenham & Gloucester sent us a letter saying their admin system couldn't cope and they'd charge us a nominal rate of 0.001%, then refund us. We pay them 24p and they pay us back 23p.”

Commenting on the interest free mortgage repayments, Ray Boulger, of an independent mortgage broker said: “They're the last below base-rate trackers we'll see for a considerable time…Lenders have learned their lessons.”