News: Mortgages – BOE Drop Base Rate Again To 0.1 Percent In Shock Cut
Coronavirus is spreading quickly throughout the world and the effect on our economy is already being seen – with a particular effect on tracker mortgage rates which are currently hitting an all-time low.
In an unprecedented move the base rate has been cut further to 0.1%.
Last week, the Bank of England base rate was dropped to a historical low from 0.75% to 0.5%, in an effort to prop up the economy during the Covid-19 outbreak.
The result of the first cut had led to banks and building societies starting to reveal plans to roll out tracker rate mortgages which are around and below 1%. These changes are due to come into effect of April 1st 2020.
With the latest cut it is unclear whether lenders will follow suit.
What does this mean for mortgages?
There are various mortgage providers who are offering sub-1% two-year tracker rates (for those applying with larger deposit amounts).
- Scottish Widows for Intermediaries
To put this in context, from the 1st April the Nationwide Building society will be offering:
- A base mortgage rate at 2.25%
- A standard mortgage rate at 3.74%
For those who already have a tracker mortgage with Nationwide, you should see your rate reduce by 0.65% - for new borrowers, this rate will increase by 0.15%.
What does this mean?
We can’t know exactly what will happen next - such dramatic base rate cuts in quick succession are unprecedented.
Are you looking to take out a tracker mortgage to take advantage of these attractive rates?
Contact Clifton Private Finance to see how we can provide your financial solution
Read more on our mortgage services:
- Our Mortgage Service
- Buy to Let Mortgage Service
- Million Pound Mortgage Services
- Large Mortgage Service
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