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HOW LOW CAN THEY GO?

September 28, 2016 11:45 am
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HOW LOW CAN THEY GO?

low-interest-ratesHOW LOW CAN THEY GO?

 

When the Bank of England cut the Bank Rate 0.25% in August, lenders were urged to pass the reduction on to borrowers.

According to the Council of Mortgage Lenders, around 1.5 million borrowers have Bank Rate tracker mortgages and another 3.5 million have other types of variable-rate mortgage whose rates may move in line with Bank Rate.

But for those looking to borrow afresh or to re-mortgage, the question is, will deals for new borrowers improve in coming weeks and months?

The rate cut, combined with fierce competition in a smaller market is driving down rates and resulting in a greater choice of products.  According to the National Mortgage Index for July 2016, there are now over 23,000 mortgage products available, a number last seen in 2008. This choice can only be a good thing for consumers and is likely to increase further following the rate reduction.

At present, it is unclear whether there is room for fixed rate mortgages to fall much further and choosing how long to fix for is always a tough call for borrowers, as stability can come at a price. But with rates so low, and uncertainty remaining high, longer term fixed rate mortgages are still likely to appeal to borrowers who prioritise stability.

Lomond Mortgage Services have access to mortgage products from more than 90 lenders. If you are looking to buy your first home, move house or re-mortgage, our advisers are on hand to offer our expert advice, whether it’s face-to-face or over the phone. Get in touch with us today to book an appointment.

Emma Losty is from Lomond Mortgage Services – for further information call: 0161 942 4145

Email: [email protected]

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for arranging a mortgage.  The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £395.00.

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