With both an increase in the Bank of England Base Rate, along with the excellent deals currently on offer, maybe now is a good time to assess your borrowing needs?
Whilst a Base Rate rise possibly signals the direction we’re travelling in, we currently live in a low interest rate environment. For example, stepping back a decade or so to the economic crash in 2007/8; the Base Rate was as high as 5.75%. Going even further back it was almost as 15% in 1989!
Additionally, the Bank of England regularly points out that Base Rate increases would be at a gradual pace and to a limited extent.
That said, there are no guarantees that the decent deals currently out there will not move, at some point, in an adverse direction.
Where we can help
Undoubtedly, with the complexity of the mortgage (and wider borrowing) market-place, along with the extensive range of protection product on offer, it makes sense to take advice. In fact research shows that around 80% of all mortgages, for example, go through intermediaries (such as us).
(Source: press, Mortgage Efficiency Survey, September 2017)
Meeting you funding needs
Should you want to take action, we would seek to find a solution for whatever borrowing needs you may have, such as:
- Getting onto the property ladder
- Moving to a new home
- Seeking extra funds to undertake renovations to your existing property
- Securing a better interest rate than your current mortgage deal
- Looking for a solution as you’re coming towards the end of the deal period, or have already gone beyond it, and now sit on a possibly more expensive Standard Variable Rate (SVR).
- Expanding or getting into the buy-to-let arena.
Some issues to consider
UK house prices continue to rise slowly (albeit with regional variations). In July 2018, there was a 2.5% annual increase across the UK.
(Source: Nationwide, August 2018)
The government is also committed to increasing the number of new homes that are built each year. In many cases this will assist first-time buyers, who continue to benefit form various government initiatives.
Inflation, which does have an impact on any Base Rate rise, currently sits at 2.4%, just above the 2% Bank of England target.
(Source: Office for National Statistics, July 2018 release)
Whilst a strict lending requirement remains in place, we operate in this market-place daily, and consequently have a good understanding of what differing lenders are looking for. Hopefully, this means we’re more likely to find a solution for your needs.
Please get in touch to hear more.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your property make be repossessed if you do not keep up repayments on your mortgage.