The fifth part of our Sky News feature is now live on the Business homepage:
"This week the Bank Of England cut the base rate to 1%. It doesn't sound right does it? 1%? All those on variable rate and tracker mortgages will be rubbing their hands with glee, those of us on fixed rates are green with envy.
So what are these people who have seen huge drops in their monthly repayments doing with this sudden windfall? Nice holidays? New kitchen? Brand new car? Putting it away as savings?
No - the people we know are being prudent because of the recession, so they are overpaying their mortgages!
Without savings, building societies can't dish out mortgages - which means it's pretty much stalemate.
That said, the Halifax have announced that house prices rose 1.9% last month. I'm still finding economics a bit confusing, Mrs Smith!"
Read the full feature here
