WHAT DOES THE BANK OF ENGLAND BASE RATE CUT FOR HOMEOWNERS “side-valuation-button"

13 Sep 2016

WHAT DOES THE BANK OF ENGLAND BASE RATE CUT FOR HOMEOWNERS

Share this


Last month the Bank of England announced that the base rate would be cut for the first time in 7 years from 0.5% to a new historic low of 0.25%.

How will this affect homeowners?

The obvious effects are that it should boost confidence, in addition to reducing the cost of borrowing for homeowners, but not by huge amounts and not everyone will benefit.

Standard Variable Rate Mortgage

29% of borrowers are on standard variable rates which are set individually by each lender and it is up to them whether they choose to pass on the potential savings on. Whilst it remains unclear where the majority of lenders currently stand, most are unlikely to make any significant changes. Don’t worry if you do miss out, as there could be greater savings to be had elsewhere. For example, you could save up  by switching to a fixed rate.

Fixed Rate Mortgage

46% of borrowers are on fixed rates. If your mortgage deal is fixed, it will remain unchanged until your fixed rate comes to an end. But while the rate change won’t provide any benefit to you directly, it’s important that you explore all options that become available to you as a result. This may include considering remortgaging in order to obtain a better deal elsewhere, though if you did decide to make the switch, you will likely be subject to an early repayment charge, as is the case with most lenders.

Make sure you assess the amount of time left on your mortgage term and weigh up whether any potential savings will provide you with a financial advantage versus your exit penalties to make it worthwhile.

Tracker Mortgage

Borrowers on tracker mortgages directly linked to the base rate should automatically see the rate cut passed on, unless they have a floor meaning their rate will not go lower.

What else is happening?

Recent figures released from Mortgage Brain have revealed that potential landlords are set to benefit further from the continuing reductions of mortgage rates.  The cost of a 5-year Fixed Buy To Let mortgage is now 8% lower than it was in March, 2016.

There was also a surprising rise in the number of property buyers in August, properties sold rose by 2.8%.

Barclays also recently calculated that there is over £14bn of maturities in September, meaning that there will be an influx of remortgage activity over the next few months.

The importance of seeking expert advice cannot be stressed enough. If you would like to find out if you could get a better deal, speak to one of our advisors at The Mortgage & Insurance Bureau. Contact the team on 01895 622700 or emailinfo@tmib.org.uk to see if they can help you reduce your costs.

Your home may be repossessed if you do not keep up repayments on your mortgage. The typical arrangement fee is £195.00; however the actual fee you pay will be dependent upon your circumstances.





Share this


Add this
GIBBS GILLESPIE © 2015 All rights reserved Designe





FIND US ON SOCIAL

We interact with customers on all the main social media channels including Facebook, Twitter,
YouTube, LinkedIn, Pinterest and Google+ giving each property we list maximum online exposure
.

          

 
POPULAR SEARCHES:
Harrow property for sale | Stanmore property for sale | Pinner property for sale | Northwood property for sale | Rickmansworth property for sale | Ruislip property for sale | Uxbridge property for sale | Gerrards Cross property for sale |
London Estate Agents | Harrow Estate Agents | Stanmore Estate Agents | Pinner Estate Agents | Northwood Estate Agents | Rickmansworth Estate Agents | Ruislip Estate Agents | Uxbridge Estate Agents | Gerrards Cross Estate Agents | Residential Sales | Lettings & Management | Mortgages | Land & New Homes | Contact | Privacy Policy | Independent Estate Agents | Info About Us
Gibbs Gillespie Sales Limited is registered in England (Company No. 08786708) Registered office address: Batchworth Place, Church Street, Rickmansworth WD3 1JE     Copyright © Gibbs Gillespie 2015



SEARCH FOR YOUR NEW HOME


Find out the value of your home!  We offer a free valuation service

ARRANGE A VALUATION