We have woken to the news this morning that the Bank of England has slashed interest rates to 0.25%, that’s a reduction of 0.50% overnight following an emergency meeting of its monetary committee yesterday. This takes borrowing costs back to the lowest level in history.
This is part of a package to help households and to provide financial stability through the “economic shock” of the coronavirus outbreak.
I already have a mortgage, what happens next?
- Fixed rates – If you are currently within a fixed-rate, these won’t be affected and won’t change. However, you may be closer to the end of your fixed term than you realise. If this is the case, get in touch with us and we can see if we can enquire with your existing lender and find out the next steps for a new deal.
- Standard Variable Rates or Discounted SVR’s – This is dependent on the individual lender and whether they move in line with the reduction. The majority of these rates have no early repayment charges, so again, a perfect time to review your mortgage and potentially switch to a new lender.
- Tracker mortgages – These should drop by 0.50%, check with your existing lender when the date effective will be from. Tracker rates are still available on the market, so we still suggest checking this out to make sure you are on a competitive rate, which is tailored to you.
Note: We cannot comment on the effect on your existing rate, deal or monthly payment. You would need to speak with your existing provider to check this.
I’m in the process of either looking to purchase or purchasing a house, what should I do?
- If you’re looking to purchase, we can offer guidance on affordability and provide a current market view on rates. This will give you an idea of mortgage monthly payments, deposit amounts, first-time buyer ISAs and much more.
- If you’re buying a house now, don’t panic! If you would like to speak to your dedicated Adviser within Brookson Financial, we can review your current rate for you and possibly look at the next steps if needed.
We have access to the whole of the market and have many different lenders and types of rates to choose from. To book in for a free initial consultation to discuss with one of our Mortgage Advisers, please contact 0345 058 1280 or email email@example.com.
Brookson Financial is authorised and regulated by the Financial Conduct Authority. A mortgage is a loan secured against your home and your home could be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.