So how will this affect Mortgage rates
Variable mortgage holders rejoiced as they woke up this morning to the news that Bank of England has reduced Bank Base Rate to 0.25% from 0.75%. It is estimated £1million households should feel the benefit in a lower monthly mortgage payment as early as next month.
Resident mortgage expert Mr Payam Azadi has commented on the likelihood this reduction will influence current mortgage offers for new customers:
“I’m no economist but depending on how the Coronavirus expands I think there’s a strong case for keeping rates low for a short period. As this emergency measure was bought in without a lead-in time it’s too early to gauge the lenders might react and look to reflect this in their new business rates particularly as the reduction is likely to be temporary.
If they do pass on a saving we can always try to swap product halfway through the process so it shouldn’t concern applicants that are in or close to starting the process.”