The following information has been gathered by Life-Style Property Services from several sources.
Following Britain's decision to leave the EU, the British public have been unsure of how the decision will affect us financially, politically and economically.
In July 2016 the Monetary Policy Committee voted in favour of holding the bank rate at 0.5%. The bank rate is set by the Bank of England and determines the price which banks and building societies buy and sell money at. Rates had been at 0.5% for the last 7 years but today the Bank of England has cut interest rates to 0.25% in an effort to to stimulate the UK economy, including a scheme to force banks to pass on the low interest rate to households and businesses. Governor Mark Carney said there was scope to cut the interest rate further if the economy further deteriorates.
Traditionally, a cut in rates meant a reduction in people’s monthly mortgage repayments and people on tracker mortgages, where repayments vary with the base rate, will benefit from the interest rate cut. However, the number of people on tracker mortgages has declined over the years with people opting for fixed rate deals to lock in low rates for a few years in anticipation of an interest rate rise rather than a cut.
Mortgage rates are already low and there is a chance that they may go lower although some believe they will not. So if you are looking to buy a new home, why wait? The base rate cut could save you money but if you leave it too long you could miss out on securing a deal on a property.
Please contact us if you would like to speak to one of our fully qualified, independent mortgage advisors about available deals that could suit your situation.
