When the Bank of England cut the base rate in August from 0.5% to 0.25%, the immediate winners were those with a tracker mortgage, but there is also good news for those wishing to re-mortgage and for those considering getting on the property ladder for the first time.
Cheaper mortgage deals began to appear on the market in the wake of the decision to leave the European Union in July, which are now at an all-time low.
Those looking to re-mortgage are taking advantage of the low rates to either reduce their monthly repayments or to borrow more. July saw the first ever fixed rate mortgage charging less than 1%.
Figures show that there has been a slight increase in those re-mortgaging to pay for home improvements or to consolidate debts, in the face of low interest rates for savers. However, those planning to re-mortgage need to be aware that the best rates may only be available for brief periods or limited amounts of borrowing.
The drop in rates also means that first time buyers can take advantage of the general downward movement of long-term interest rates. Some of the lowest rates are now available with the best rates for two-year and five-year fixed-rate loans at 1% and 2% respectively.
Tollers can provide a dedicated conveyancer and team with a fixed quotation for our services right from the start. We can help with the consideration of things such as the potential cost of remortgaging, ensuring the security provided by your property is adequate for the mortgage you are taking out and particularly the impact of any early redemption charges.
If you are considering re-mortgaging, be it for debt consolidation, maybe some home improvements or even if you are looking at getting a mortgage for the first time, Talk to Tollers.