A Great Opportunity

IFA Matthew Bloom looks at the possibilities the low interest rates will bring.

The mortgage sector like all others is feeling the uncertainty that the Corona Virus has brought to the world. What separates it from many industries however is the direct financial benefit borrowers will receive from the emergency interest rate cut by the Bank of England. The Bank of England base rate at which the central bank lenders money to commercial bank. This has been slashed from 0.75% to 0.1%, the lowest level in history. The cut is a move to help bolster cashflow for UK households and businesses feeling the affect of the Coronavirus. In theory this lower cost to banks should be passed onto borrowers.

Now is therefore a great opportunity for those looking to buy property, we have already seen a number of retail lenders move to reduce their interest rates. These lower interest rates mean lower monthly payments for you and represent a great time to take a fixed interest rate, locking in these low monthly payments for the near future.

Those who will recently need to re-mortgage should hopefully find that they are able to re-fix their interest rates at similar levels or better than what they currently have. There are plenty of lenders out there that will provide re-mortgage offers that are valid for 6 months. If you are within 6 months of your interest rate expiry now is a great time to get a re-mortgage application submitted to lock down one of the incredible deals currently available.

Matthew Bloom is an IFA at Pennymatters