Property Update: Could Mortgage Rates Go Down Again in Coming Weeks?

In the past few months, the Bank of England has slashed the base rate twice. From 0.75% to 0.25%k then to just 0.1% – a record low. These rapid-fire cuts were made as a temporary measure to mitigate the impact of the coronavirus pandemic. But with the base rate already at rock bottom, is there any possibility mortgage rates could go down again soon?

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.

We’ve not seen a 0% base rate yet…

The last time the BoE had to significantly cut rates was after the Brexit decision, and they stayed low for quite some time before rising again. It’s not very likely they would lower the rates any further – there have been talks in the past of lowering the rate to 0% or even going negative but that has never materialised.
Before the pandemic, the rates fluctuated frequently and were at their highest level in almost a decade just a short few years ago. If recovery efforts really start to impact the economy soon, rates might actually increase again.

What does this mean for the property market?

Activity in the housing market surprisingly boomed in July after months of lockdown restrictions. Since mortgage rates depend on a variety of factors, not just the base rate, you never know when they might shift away from your favour. Now might be the right time to take advantage of the low rates and refinance your mortgage.
Because the mortgage market can be a complicated place at the best of times, your best bet is to work with a mortgage broker to help you find the best deal out there for you. Brokers even have access to deals that won’t be available online to just any consumer, and brokers will be able to take into account all pertinent information that could help you secure a great rate on a mortgage.

Strike while the iron is hot. Get in touch with us today to get started on your mortgage search or to refinance your existing deal today. 

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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
 

                     
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