Interest Rates Cut in Response to Coronavirus
Wednesday, 11th March 2020
News
The Bank of England has cut its base rate from 0.75% to 0.25%. The last time there was a cut was back in 2016 but rates have been at a very low level since the financial crash of 2008.
Some mortgages will get cheaper but not all:
Fixed-Rate: as the name suggests, your rate cannot change during the fixed period but you can generally start looking at a remortgage 6 months before the end of your current term. If you are switching lender it can take a number of months to change over, so don’t leave it to the last minute as you can slip onto the pricey Standard Variable Rate (SVR).
SVR: It is rarely advisable to be on theses rates but if you are, you should see a drop in the rate your lender charges.
Tracker Mortgage: As these track the base rate, a fall on your payments should happen in the next few days
It is always worth speaking to an experienced mortgage broker who will search across the lending spectrum for the most competitive rates that fit your personal circumstances.
Far too many buyers, get their mortgage in principle from their local bank and then follow through with their mortgage product when others could be saving them hundreds of pounds a month.
