As widely anticipated, the Bank of England has today reduced the base rate of interest by 0.25% to 4.0%.
The prediction from many economists is that there will be a slow but steady reduction in the rate over the next year or so to somewhere around 3.5%, maybe even 3%.
Of course, this is just an educated guess and could well change depending on future events both in the UK and worldwide.
For those of you currently on a fixed rate, there will be no immediate effect to your mortgage by this change, but if you currently have a variable rate mortgage, then you will see a reduction in your mortgage payments and your lender will be in touch shortly to give you the details.
In terms of new mortgages, as usual this reduction has already been priced into the fixed rate market as we have seen most lenders reduce their rates in recent weeks.
If you are thinking of buying a new home, then my advice will always be not to try and time the interest rate market but to buy your new home when you are ready, and the ideal property comes available.
Our team will always secure you the best mortgage deal available to you at that time but remember this is primarily your home and not an investment.
Please get in touch with me or a member of the Barlow Irvin Financial Services team if you have any questions.
𝐀𝐬 𝐚 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐢𝐬 𝐬𝐞𝐜𝐮𝐫𝐞𝐝 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐲𝐨𝐮𝐫 𝐡𝐨𝐦𝐞 𝐨𝐫 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲, 𝐢𝐭 𝐜𝐨𝐮𝐥𝐝 𝐛𝐞 𝐫𝐞𝐩𝐨𝐬𝐬𝐞𝐬𝐬𝐞𝐝 𝐢𝐟 𝐲𝐨𝐮 𝐝𝐨 𝐧𝐨𝐭 𝐤𝐞𝐞𝐩 𝐮𝐩 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐫𝐞𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬.