The Bank of England has reduced the UK’s Interest Rates to 0.25% - a record low.
This is the first time Governor Mark Carney has lowered the rate since 2009. It comes following the UK’s decision to leave the EU and he told the BBC: “The economy is in a period of uncertainty and about to go through a period of adjustment.”
Among other things, the reason for reducing the rate is so that consumer confidence can increase, as many of us will benefit from lower costs and mortgage rates. This helps to stimulate the economy. Additional measures that have been put in place include a rule that ensures banks to pass on the lower rates to households and businesses. There was an indication that rates would be lowered even further if necessary.
A change in our official UK Interest Rates means different things to different people. Some, for example, will have large amounts in savings that they may take a hit on due to lower rates. However some may have ‘tracker’ mortgages that are amended based on the current Bank of England interest rate. These will now be lower, bringing monthly repayments down.
Much of the property press has reported now is the time to consider buying a home if you don’t already have one or adding to your property portfolio. Over the coming weeks and months, lenders and mortgage companies will be reducing the cost of borrowing money, making it easier to get on the ladder in London or purchase a new property. You can see what we have available to buy at Outlet, here.
We have a Money Team, which can offer guidance when it comes to the right mortgage for you. Our financial services department helps people every day to secure a brighter, more stable future, whether it’s with mortgages, insurance or protection products.
If you are unsure of your next steps following the Bank of England Interest Rates change, give our team a call on 020 7287 4244 and one of our team will be happy to help.