At the most recent meeting of the Monetary Policy Committee, the Bank of England announced they would be holding the base rate at 0.75%. But what does this mean for borrowers in the midst of a mortgage search?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Up until a few weeks ago, the speculation about what would happen to the base rate in the wake of Brexit was rampant. Many believed the BoE would be cut again, but staying firm at the current rate bodes well for consumer confidence in the UK economy, with many experts believing that this will help the market’s performance.
What happens next?
As the rate has remained the same, borrowers shouldn’t expect drastic changes in the deals available. If the rate had been reduced as many expected, however, then competition between lenders may have heated up.
Depending on the progress of trade deal discussions following Brexit, there is also a possibility that at subsequent MPC meetings, the Bank of England could choose to raise rates. If this is the case, then if you’re considering purchasing property this year, it’s best to begin the process as soon as possible to avoid any potential rate hikes later on.
It’s wise to keep an eye on current events so you’re aware of how future MPC decisions on the base rate will impact your mortgage search.
With the first quarter’s growth forecast only projected at 0.2% and just 0.75% for the entire year, the prevailing opinion is that the rate will most likely hold firm for the time being.
Faith in the market
Mortgage approvals have been increasing year on year and experts assert that there will be continued confidence in the mortgage market this year as well.
Borrowers should continue to take advantage of the low rates while they’re available. Lenders have also been offering more products than ever to appeal to both residential and buy-to-let mortgage seekers.
Make your mortgage search easy
With all the options available on the market, it might be overwhelming to go it alone. If you’ll be on the hunt for a new property this year, be sure to get in touch with our mortgage expert, Chris, to schedule a mortgage review. He can help you secure the best deal with a provider that understands your business needs.
Need help to secure a low-cost mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |
Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.
Tel: 01403 780 770