Andrews Mortgage Services has reported that 35% of new borrowers followed the tracker route this January as interest rates were cut once more.

On 7 th February 2008, The Bank of England’s Monetary Policy Committee (MPC) voted to reduce interest rates to 5.25%. This is the second cut in just over two months the previous being 5.5% from 5.75% on the 6 th December 2007.

Chris Chapman, director of Andrews Mortgage Services, said: “This second fall in interest rates is a welcome respite for many borrowers who will see repayments on an average 25-year mortgage of £150,000 fall by around £45 per month since the end of last year.

“Following the MPC’s latest announcement, the Woolwich was the first to announce it will cut standard variable rate and base rate tracker products by 0.25% on the 1 st of March. This paves the way for other high street lenders and I would expect many, if they have not done so already, will soon follow suit.”