Most of Britain's homeowners would never have dreamed that they could be paid for taking out a mortgage, but with the Bank of England preparing to cut borrowing costs today to their lowest level ever, lenders may have to cope with zero interest rates.

If, as many analysts expect, the Bank of England cuts rates by a full percentage point to just 1%, those with loans that track a point below base rate will find themselves paying no interest. Several thousand who took out a two-year tracker in 2007 with Cheltenham & Gloucester, an arm of Lloyds TSB, set at 1.01 points below base rate will, in theory at least, be owed money.

The Guardian