Base Rate held at 0.25%

December 16, 2016
House and Calculator

Thursday 15th December marked the day that the Bank of England’s Monetary Policy Committee unanimously voted to maintain the base rate at 0.25%. The Monetary Policy Committee also confirmed that they fully expect inflation to hit their 2% target much faster than was predicted, in fact within the next 6 months.

What does this mean for mortgages?

The likely reaction across the next 12 months would be for the Monetary Policy Committee to use the base rate to keep figures under control. This would lead to an increase in the base rate, and a knock-on effect to the mortgage rates offered.

It is no secret that swap rates have been volatile for the past few months, and last week HSBC withdrew their market leading products, increasing rates by 0.1-0.2% across the board. HSBC usually are a good indicator as to how the market is moving, and typically lenders follow suit.

At Contractor Financials, we are still able to offer market leading rates, including an incredible 1.55% on a 5 year deal with Leeds Building Society!

BEST BUYS

  • 60% 2 year fixed rate Leeds Building Society 1.19%
  • 65% 2 year fixed rate with Accord 1.33%
  • 80% 2 year discounted variable rate with Furness Building Society 1.24%
  • 80% 5 year discounted variable rate with Leeds Building Soceity 1.55%
  • 85% 2 year fixed rate with Leeds Building Society 1.55%
  • 90% 2 year discounted variable rate with Furness Building Society 1.99%

Rates quoted correct at date of publication.