Bank of England Cuts Base Rate! This is what it means for you.
The Bank of England has just announced a reduction in the base rate, marking a significant shift in the economic landscape. Below is a note and a handy mortgage calculator from our sister company, Planet.
After a period of high interest rates aimed at tackling inflation, this cut is a welcome relief for homeowners, buyers, and those looking to remortgage.
How Does This Affect You?
Lower Mortgage Repayments:
If you're on a tracker or variable rate mortgage, you should see an immediate reduction in your monthly payments. This is great news for homeowners feeling the pinch of rising costs.
Fixed Rate Mortgage Holders:
If you're currently on a fixed rate, this change won't affect your payments right away, but it could mean lower rates when it's time to remortgage.
First-Time Buyers:
With lenders likely to respond by reducing mortgage rates, this could be the perfect time to get on the property ladder with more affordable borrowing options.
Remortgaging Opportunities:
If your fixed-term deal is coming to an end, now could be a great time to explore securing a lower rate and locking in long-term savings.
What Should You Do Next?
Every mortgage situation is unique, and with lenders expected to adjust their rates in response to this cut, getting expert advice is key.
At Planet, we'll help you navigate the market and find the best deal tailored to your needs.
Get in touch today to see how the rate cut could benefit you.
Use our Mortgage Calculator below and get in touch to find out how we might be able to help.