07/11/2024
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The Bank of England Base Rate has been reduced to 4.75%. This is fantastic news for the mortgage market and a step in the right direction for existing and new home owners.
So what does this mean for you?
For those on a fixed mortgage deal there's no change for now – but make sure to check rates if your deal is ending soon. Regardless of what happens to the base rate, the amount you pay WON'T change during your fixed period.
If you're close to the end of a mortgage deal, it’s sensible to look at new deals now otherwise you'll end up on your lenders' expensive standard variable rate (SVR). You can usually lock in a new mortgage deal between three and six months ahead of time.
If your deal is ending imminently but you don't want to re-fix yet, you could consider a tracker that doesn't come with early repayment charges. That way, if rates come down, you could move onto a fixed deal, penalty-free. But bear in mind that trackers are currently more expensive than the cheapest fixes.
If you're on a tracker mortgage that 'tracks' the base rate, you'll see your rate come down. And a change to your monthly repayment within days or weeks, depending on when your next repayment is.
If you're on your lender's Standard Variable Rate, the rate you pay MIGHT also come down. You're usually moved onto your lender's SVR after your fix or tracker deal ends. SVRs can be changed at the lenders discretion, though normally it coincides with change to the base rate.
However, SVRs are typically far more costly than fixed and tracker deals – currently they tend to range between 7% and 8%. So, please contact me to check if you can save by switching now.
For a free review of your mortgage options please contact me on:
✉️[email protected]
📞07557988090
