At last there is some good mortgage news for what feels like the first time in years! For the first time in 21 months, the Bank of England met today and DIDN’T increase the base rate! They didn’t reduce the base rate but just keeping it the same is really positive after such a long time of rate rises. This is in response to another positive inflation announcement earlier this week where it had come down more than anticipated. This gives a good indication that the Bank are confident the economy and inflation are moving the right way and this should be reflected in further fixed rate reductions in the short and medium term. The swap rates that banks use to lend to each other also continue to come down which is another positive and these rates are more closely linked to fixed mortgage rates.
Even before this news today, lenders have continued to quite regularly reduce rates over the past couple of weeks and it looks like that’s going to carry on. Since the base rate announcement this lunchtime, Nationwide have already announced they are reducing some fixed rates by up to 0.31% which is a significant reduction and larger than the reductions that have generally been implemented in the past couple of months. Lenders are like domino’s so expect more to follow soon.
Currently the best fixed rates for residential purchases our Mortgage Advisor can get for you are:
2 years fixed: 5.45%
3 years fixed: 5.50%
5 years fixed: 4.97%
10 years fixed: 5.04%
As you can see, there is already a 5 year fixed deal under 5% which is good news and we expect these rates to come down further in the coming days so another reason for buyers and sellers to speak to our Financial Advisor to ensure you are getting the best deal even if you have already spoken to someone else recently. You have nothing to lose, give us a call now and make an appointment with our Wealth Management Team.