In an emergency response to limit the economic disruption caused by Coronavirus (Covid19), the Bank of England has cut the base rate from 0.75% to 0.25%.
But what does this mean for you?
If you already have a mortgage, are looking for a mortgage, or your current deal is due to come to an end, what, if anything, does this mean for you?
For those of you on a base rate tracker mortgage, it’s great news. You should see this reflected in your rate within the next 30 days.
If you’ve received a mortgage offer based on a fixed rate and are waiting to complete, your offer won’t change.
If you’ve received a mortgage offer, but would like to consider different products, we may be able to look at switching for you. But, a word of caution here. Some lenders may insist on re-credit scoring your application, which could put your offer at risk of being withdrawn. You may also be charged an administration fee for changing to another product after offer.
In recent years, lenders have been involved in a rate war, which means rates are more competitive than ever before. It’s unclear how lenders will respond to the news. However, it’s likely that there will be a ‘tightening of belts.’ If you’re looking for a mortgage, there’s no time like the present!
Confused? Ingard can help
With so many ifs, buts and maybes to consider, you’re not alone if you feel a little confused. With so much confusion, the best thing you can do is seek advice from a whole of market mortgage expert. Ingard can help. No question is ever a stupid question. We can chat through your situation, guide you through the confusion and provide some clear advice on your borrowing options.
If you have a mortgage in place, but are unsure how this news will affect you, or if you’re temporarily struggling to meet your repayments because of the Coronavirus, don’t be afraid to reach out to your lender directly for advice. Many lenders have published helpful guides and FAQs on their websites.