Lower UK mortgage rates.
Home-owners can thank the government for lower mortgage rates.
The government's funding for lending scheme which was launched on 01 August may be helping would-be buyers and those looking to remortgage find a cheap deal.
The new government scheme was recently launched specifically to offer cheaper funding to lenders signed up to the scheme, providing they use the money to offer cheaper rates for both mortgages and small business loans.
Lenders have already started to cut mortgage rates, fixed rates in particular are falling and many competitively priced longer term deals are now on offer.
The hope is that cheap funding will stimulate the housing market which will have a knock on effect and stimulate the economy as a whole.
If the cheap funding scheme fails and banks do not pass on cheaper rates or increase lending then the BoE has hinted that it may be forced to cut the base rate.
The BoE committee has nine members who currently all feel that further economic stimulus is essential if the 2% inflation target is to be met. Currently there is no plan to cut the base rate however the Bank’s QE programme has been increased by £50 billion.
While mortgage rates remain low you are advised to contact Deal Direct to make the most of the cheap offers that are available.
We are an independent 'whole of market' broker who can compare all rates on offer to come up with the most competitive quote.
Call Deal Direct today for advice and a free quote.
