Latest figures from Halifax have revealed that cost of running a household have dropped to £7,300 a year from £8,800 in April 2008 which is lowest in three years. This is mainly attributed to the falling Mortgage Rates. Economist Suren Thiru said that such a drop in running the household would help ease pressure on household disposable income thereby giving some comfort to the homeowners.
The Bank has cut rates from October last year from 5 per cent to 0.5 per cent with borrowers with a tracker option. However, though mortgage payments dropped in the past 12 months other charges of gas and electricity were on the rise with charges increasing by 13 per cent. House prices dropped by an annual rate of decline of 15.9 per cent in May compared to 16.2 per cent in April.