During these unprecedented times, the Monetary Policy Committee have introduced a lower Bank of England base rate to assist householders and the economy in dealing with the financial impact of Covid-19.
The Bank of England have stated, “the reduction in bank rate will help to support business and consumer confidence at a difficult time, to bolster the cash flows of businesses and households, and to reduce the cost, and to improve the availability, of finance.”
Since 19 March 2020, the current Bank of England base rate now stands at 0.1%. The rate had previously been at 0.75% since 2 August 2018.
The lower base rate will impact on two main areas of our finances. Firstly, the amount of interest we can earn on our everyday savings and secondly, how much it will cost to borrow money. This lower base rate of 0.1% could mean that mortgage deals will become much cheaper.
If you are on a fixed-rate mortgage i.e. a mortgage where the lender guarantees a fixed rate of interest for a specified period, your fixed term will expire on a specific date and subsequently revert to the lender’s standard variable rate. It is worth noting that most lenders’ standard variable rates are above 4.19% as of August 2019, which can be costly. The same principles apply to most buy to let mortgages.
Many may now be considering whether or not it is worthwhile re-mortgaging, particularly if a fixed rate deal is due to expire in the coming months. Note that early re-payment charges may be imposed if you re-mortgage within the applicable period. We recommend that you speak to your mortgage broker and/or lender for further information on your specific deal and to assess affordability.
Our highly-qualified and experienced team of lawyers at Blaser Mills Law are able to assist with your re-mortgage, whether that be a residential mortgage or buy to let and we are on the majority of lenders’ panels of preferred solicitors.
Our property solicitors are proactive and pragmatic, providing practical advice to effectively meet your objectives. Our lawyers are on hand to discuss any queries you might have in relation to your re-mortgage so please contact, Zara Liedl Carroll on 01494 788026 or at email@example.com if you would like further information and/or a quotation for consideration.