11 Mar 2020
Marketplace Insight: Rates, Borrowing and Performance
The Bank of England has today announced an emergency cut in interest rates, taking borrowing costs back down to the lowest level in history.
In a bid to bolster the economy amid the coronavirus outbreak, policymakers have reduced rates from 0.75% to 0.25%. The Bank said it would free up billions of pounds of extra lending power to help banks support firms.
Positive news for borrowing
Many homeowners will see their mortgage repayments change because of the move in the Bank of England’s base rate. People on ‘tracker rates’ – which follow/track the changes to the Bank rate should see their mortgage payments drop.
Financial information service Moneyfacts explains that someone with a £100,000 mortgage balance to pay over 25 years will see their mortgage get £24 cheaper each month as a result of the cut.
Other borrowers on a variable rate mortgages will have to wait and see how their home loan provider reacts, as mortgage rates are already at favourably low levels.
If you'd like to discuss anything about a current mortgage or if you are looking for mortgage and protection advice contact us and we'd be happy to help.
A positive and healthy marketplace
Miles & Barr Group Managing Director, Mark Brooks, says there is reason to feel encouraged, given the current status of the marketplace.
"From internal figures we are significantly ahead of expectations in a number of areas for this time of year and comparatively against the previous three years. More applicants have been registered, a greater volume of sales have been agreed and a record number of people have been moving in to their new homes."
Given the buoyant marketplace, requests for property valuations have continued to rise. As a result of the increasing numbers of applicants and sales, more people are seeking help with securing mortgages.
Brooks welcomed the positive news for borrowing too: "The financial services team here at Miles & Barr have also enjoyed a healthy start to 2020 and there is no indication of the marketplace slowing, especially with the amazing rates they can offer."
Please don’t hesitate to ask the Miles & Barr team if you are unsure of how The Bank of England’s cut in interest rates will impact your property requirements.