The Bank of England’s Monetary Policy Committee unsurprisingly voted for no change to the Base Rate during their September meeting. The decision to stick comes two months after the injection of £50bn into the UK economy in July.
Last month the rumour mill was rife with the suggestion that the MPC may cut the Base Rate beyond 0.5%, but it seems the rumours were wide of the mark. Good news for some, as a potential Base Rate cut could have sent savings levels crashing, resulting in a lack of funding for homebuyer lending.
The Bank of England’s newest initiative to stimulate lending in the wider economy – the “Funding for Lending Scheme” officially launched on the 1st August.
As well as stimulating an increase in product numbers, the Funding for Lending Scheme has resulted in a fall in interest rates as lenders compete for business. This is evidenced by Moneyfacts data showing that at the beginning of September average rates fell once again.
The average cost of 2, 3 and 5 year fixed rates have reduced month on month. The average two year fixed rate fell to 4.57% in September, the three year fixed rate to 4.89% and five year fixed rate to 4.60%.
Chancellors are able to arrange for you to speak with a mortgage adviser – for more details, speak to your nearest branch or call us on 0800 454 898.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
