The Bank of England Interest Rate

On 4th August 2016, the Bank of England reduced the base rate of interest to an unprecedented low of 0.25%. 15 months later, today’s announcement sees the return to a base rate of 0.5%, the rate they stood at from March 2009 until last year.

In light of this announcement, there is still positive news to be sharing with your customers:

• Lenders have been pricing for this rate rise for a couple of weeks now… but rates are STILL historically low!
• Help To Buy rates are starting from just 1.39% (2 Year Fixed) and 2.05% (5 Year Fixed)
• 90% product rates start from as low as just 1.90% (2 Year Fixed)

We do not expect to see any tightening of lender criteria or affordability as lenders continue to compete to win market share – they have targets to meet and are still very much keen to lend!

In addition to the above, 5 Year Fixed rate options are in plentiful supply and 95% deals remain available through multiple lenders who continue to take a proactive approach to incentives.

“On this day of change, it is very much business as usual as our focus remains on helping you secure sales and delivering your Customers a 5 Star Service.“

Terry Higgins
Managing Director