Bank of England cuts base rate to lowest ever level
On 19th March, the Monetary Policy Committee voted unanimously to reduce the Bank of England Base rate. This is in an attempt to mitigate some of the potential financial fallout from the Coronavirus. The reduction from 0.25% to 0.1% follows the cut earlier this month from 0.75%*. This is the lowest level in the history of the Bank of England*.
What this means for Home Owners and Home Buyers
Adam Nanson, Managing Director for Your Mortgage Expert in Salisbury comments:
“The Bank of England have made a decisive move to try and hit this situation off at the pass. And, it is undoubtedly good news for those currently on a tracker or variable interest rates. It will also provide a relief for those currently struggling to keep up repayments as well as those who may come into financial difficulty as a result of the Coronavirus.
“As the lenders respond to this Bank of England Base Rate cut, we are hopeful that lenders will also reduce their fixed rates for new customers. However, as this is deemed a temporary measure by the Bank of England, it remains to be seen whether there will be a significant drop in fixed rates for new customers. So, all I can say is watch this space!
“We would therefore advise that, if people are thinking about changing their mortgage, to act now. This will enable to secure a mortgage at a very competitive interest rate and also give them financial security with regards to future monthly mortgage payments.”
How Your Mortgage Expert can help
Adam Nanson continues:
“If you are thinking about switching your mortgage deal, we would really encourage you to speak to your mortgage broker. We will take time to review your situation to establish whether you could be paying too much, whether you would save money by switching to an alternative product and whether any fees would be payable should you do so.”
If you are interested in having a no obligation chat about your mortgage, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
YOU MAY NEED TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
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