07.07.11 by Andrew Montlake
BoE Bank Base Rate unchanged yet again
There are no prizes for guessing that the Bank of England Monetary Policy Committee has decided to keep Bank Base Rate unchanged yet again, especially in light of the fact the loudest voice for rate rises, Andrew Sentance, is no longer around.
To be fair, at present there is little choice as the political consequences of changing rates over the next few months may be too much to bear. The High Street is struggling, the financial problems of stores such as Habitat, Jane Norman and TJ Hughes is testament to weaker consumer confidence, and job cuts such as those announced by HSBC and Lloyds recently seem to be everywhere.
Whilst there are still those who argue for an early rate rise rather than having to play catch up in the future, economic growth (if there is any), seems far too fragile.It is ironic therefore, that contrary to media reports that mortgages are still impossible to get the mortgage market appears to be firing again, not quite on all cylinders, but firing nonetheless.
As I mention in my blog, there is no shortage of mortgage deals and lenders have actually begun to compete for your business.
Popular amongst lenders is the concept of the 7 day sale, where market-leading products are available for 1 week only. Whilst tit-for-tat pricing has helped to drive down the rates to the point that you can now obtain a discounted variable rate as low as 1.90%, (3.50% APR), tracker products with no early repayment charge are available at just 2.35%, (2.40% APR).
Fixed rates now start at 2.68%, (3.50% APR) for 2 years, 3.39% (5.50% APR) for 3 years and 3.89% (4.10% APR) for 5 years.
There is also the excellent “have your cake and eat it” product we mentioned a few weeks back that is now even better. This 5 year product begins life as a highly competitive 2 year tracker at just 1.79% above Bank Base, giving a current pay rate of 2.29%. The beauty of the product is that after 2 years, right when many expect rates to be rising even further, you switch onto a fixed rate at an excellent 3.99% for the remaining 3 years, ( 5.10% APR).
This 5 year tracker and fixed product is also available on an offset basis for an additional 0.20% (5.30% APR).
So don’t believe all you read in the press, mortgages are available and what is more, they are available at rates that are as low as they have been for 23 years (according to Moneyfacts).
Now really is a great time to look at remortgaging.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.
MAB 2976
Monty’s Mortgage Blog
18.05.12
Why Should A Borrower Choose To Use A Mortgage Broker?
There still seems to be a general misconception of what a mortgage broker actually does. Any brokers can tell you in seconds what the cheapest rate in the market is and, at various times, this will vary between a direct to lender product or a broker only deal, but this misses the point. Can this product actually be attained and is it the best to fit your personal circumstances?
Coreco
Mortgage Calculators
See how much it will cost...
See how much you can save...
See how much you can borrow...
