The Bank of England’s announcement this month to retain the 0.5% interest rate for the 71st successive month means the war amongst mortgage lenders continues full steam ahead in a surge to secure new business.
Some experts in the financial world suggest there may in fact never be a better time to buy a home!
Never a better time to buy property
It isn’t hard to understand why now appears a good time to buy a property. With the Stamp Duty restructure saving new home owners thousands of pounds, low interest rates and high competition in the mortgage market means the cost of buying a house can be significantly decreased with the right arrangement.
What a difference a month makes
Even in just the last four weeks, the average cost of a home loan is reported to have decreased by almost £1,700, figures show.
Calculations in fact show that virtually every type of borrower taking a mortgage in February 15 will save even more compared to taking it in January 15, due to further falling rates being offered by UK banks and lenders. The minimum saving would be £200 regardless of deposit.
The latest on rate rises
Clearly, there is no crystal ball, however, with this latest rate fix, many economists, including Martin Beck from EY Item Club, are edging towards an opinion that 2015 will not see an interest rate increase. Other economists also predict any rise in the future would be small and incremental.