INTEREST RATE'S CUT 1.5%

Last week the Bank of England cut the Interest Rates by 1.5% to try and help the struggling economy and property market in particular.
If you have a tracker rate mortgage then most mortgage lenders are now stating they are passing on the full 1.5% reduction in interest rate. The result in this to those on tracker rate mortgages and variable rate will be lower monthly mortgage payments.
If you are not on a tracker rate or variable rate mortgages then all is not lost. Yes you won’t see any financial reward in the short term, however the reduced interest rate has already prompted mortgage lenders to bring out some new low rate mortgage products and a few have lifted the barrier slightly on the loan to value ratio, meaning you don’t need as much deposit to purchase a property as you did 2 weeks ago. This hopefully, should mean more people can obtain a mortgage and as such the property buying market should start to kick off again. This then has a knock on affect to house prices in a positive way, as they will hopefully start to rise again.
I don’t think you will see 90%+ products for a long time but this is all a positive move from the government and mortgage lenders to try and inject a bit of faith and trust in to borrowing on mortgages and purchasing properties again.
Watch this space as we believe there may be a further reduction in the interest rates over the next few months.
To see if you can obtain a new mortgage deal simply apply online http://www.yoursmartfinance.com/Mortgages-Remortgages.php or call us 0191 233 1598 to see how we can help you