Could You Benefit from the Best Fixed Mortgage Rates in Recent Memory?
2 minute read
After the financially destabilising effect of June’s shocking Brexit vote, the Bank of England has dropped its base rate to a record low. For the first time in the Bank of England’s 322-year history, interest rates are now at an unprecedented 0.25% – the lowest rate of all time. The move is an attempt to offset the effect of the uncertainty caused by the UK’s controversial vote to leave the EU, which is believed to have triggered an economic slowdown.
Sad Savers, Buoyant Buyers
The historic move may be bad news for savers, those with company pensions and anyone hoping to travel cheaply overseas this summer (the interest rate slash immediately prompted a 15c drop against the dollar), but it presents an exciting opportunity for anyone considering purchasing property, with extremely low mortgage rates making investing in a new home a more affordable prospect.
Record Low Fixed Mortgages
In fact, mortgage rates on a wide range of popular two, five and ten-year fixed rate options have dropped to all-time lows, making purchasing property right now an incredibly attractive proposition. This is the Bank of England’s intended effect. Boosting property purchases is a good way to make the UK feel wealthier and more stable, helping to restore confidence in the economy in a bid to weather the economic “wobbles” presented by the UK’s upcoming departure from the EU. Home-owners with tracker mortgages will already be feeling the benefit of the latest interest rate cut. With mortgage rates tracking the Bank of England’s base rate, these individuals will now be paying their lowest rate of interest ever.
Should You Buy Now?
So could you benefit from the best mortgage deals in recent memory? Even ahead of the rate cut announcement, TSB and others had cut their mortgage rates in a bid to get ahead of the game. Average rates on a two-year fixed mortgage were at 4.27% in 2011, dropping to 2.68% in 2015, and today the market is again seeing record low rates for prospective home buyers. It remains to be seen whether mortgage rates will continue to drop, but some industry experts are predicting further reductions, so watch this space. Searching for your perfect fit mortgage? Take advantage of the record low mortgage rates and start securing your ideal mortgage product with help from the experts at JMB. Call us today to discuss your plans and requirements on 0800 114 3495.