Latest mortgage news and rates
The base rate remained this month at 0.5%, despite speculation it would fall following the EU Referendum. Markets suspect cuts next month though. What impact would this have on your mortgage? Read more, including this month’s BEST RATES, here.
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Base rate remains at 0.5%…for now
At their last meeting, the Bank of England’s Monetary Policy Committee (MPC) voted 7-1 to keep the base rate of interest at 0.5%.
This was after the market speculating, with 80% probability, that rates would decrease by one point to 0.25%, following the Brexit result.
The base rate has been at a record low of 0.5% for over 81 consecutive months.
Despite no movement in rates this time, during the meeting it was indicated that the bank are likely to take action next month.
More data and forecasts will be available by then, showing the implication Brexit could have on the economy.
“The market should get its way then, with an interest rate cut likely and renewed quantitative easing possible.” Paul Diggle, economist
What would a cut in the base rate mean for your mortgage?
Interest payments from UK homebuyers has recently fell to its lowest level since mid-2008.
Whilst there is no certain way to predict the future, the market is now anticipating a longer period of low rates.
“Rates could conceivably remain at rock bottom for the next five to 10 years.” Ben Brettell, senior economist
What does this mean for your mortgage?
Well, if you are already locked into a Fixed Rate deal then your monthly payment won’t change. Depending on how long there is left to run, and any Early Repayment Charges would depend if remortgaging now would be beneficial.
If you have a Tracker mortgage, this fluctuates in line with the base rate, you could see small savings per month if rates decrease from next month.
Read more: Post Brexit mortgage advice
The big question now is will Fixed mortgage rates go down even further? Mortgage rates set by lenders are independent of the base rate fluctuations, however they are set on future rate predictions.
In recent months, some mortgage deals have seen moderate increases and other moderate decreases.
The best thing to do is take bespoke advice where a mortgage adviser can assess your current mortgage and your requirements, and therefore determine your options.
Mortgages for doctors and dentists
Here are the latest rates on mortgages.
Term | Type | Rate of interest |
---|---|---|
2 year | FIXED | 1.44% |
2 year | TRACKER | 1.44% |
3 year | FIXED | 1.85% |
3 year | TRACKER | 1.79% |
5 year | FIXED | 2.15% |
10 year | FIXED | 2.49% |
2 year | FIXED (Offset) | 1.79% |
2 year | 10% deposit | 2.19% |
2 year | FIXED - 15% deposit | 1.69% |
2 year | FIXED - Buy-to-Let | 2.09% |
2 year | TRACKER - Buy-to-Let | 1.99% |
Average lenders | Standard Variable Rate | 4.56% |
Figures are sourced from Trigold Prospector. Please note rates do change daily.
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