Mortgage Base Rate Remains Unchanged: What Does This Mean For You?
Posted by siteadmin on Friday 7th of February 2020.
Mortgage Base Rate Remains Unchanged
There has never been a better time to speak to us about your mortgage.
The Bank of England has just confirmed that the base rate (the rate at which the Bank of England charges other banks and lenders when they borrow money) will remain at 0.75%.
There was a little apprehension about whether it would receive another cut due to the political instability and Brexit uncertainty. However, this important decision to keep the rate the same just goes to show that there is confidence in the UK economy - and it's here to stay.
But what does this mean for me?
Borrowers benefit from this decision in two ways: it keeps mortgage rates between lenders competitive and it increases the variety of products available.
— Bank of England (@bankofengland) January 30, 2020
The rate could have gone either way.
If it had have increased, this would have meant higher interest rates for the end consumer. However, if it had have been reduced, it's possible this could've heightened the ever-growing competition between lenders.
Keeping the base rate the same and at a low rate means consumers are able to take advantage of great deals.
Variety of Products
Due to this low-interest climate, it has forced lenders to remain competitive with one another. This has led to a whole plethora of products becoming available to both the mainstream residential and buy-to-let mortgage markets.
However, all this choice can become a little overwhelming.
If you're feeling a little confused about what is available to you or if you think you could take advantage of a better deal, speak to our friendly financial service team today on 0161 443 4830 and book your FREE consultation!
You can also click here to compare our mortgage best buys online.