Interest-free mortgages on horizon in UK

Some homeowners could be enjoying an interest-free mortgage next year if interest rates continue to fall steeply, it was disclosed today.

Some British homeowners could be enjoying an interest-free mortgage next year if interest rates continue to fall steeply, it was disclosed today.

Cheltenham & Gloucester, which is part of Lloyds TSB, offered a two-year tracker mortgage of 1.01% below the Bank of England base rate in July and August 2007.