In the good old days of the credit boom, back in July 2007, Cheltenham & Gloucester offered borrowers a tracker mortgage which would charge borrowers 1.01% less than the Bank of England’s base rate.
The Times Online now reports that on the 5th of February, the base rate might go from its current level of 1.5% to as low as 1%. This means that the tracker mortgage mentioned above would hit rock bottom, or zero percent.
However, Lloyds Banking Group, the owner of C&G say that:
because its computer systems could not cope with zero, it would be temporarily charging 0.001 per cent if base rate is cut to 1per cent.
Computer says no. Beautiful.
