Bank of England – Interest Rate Remains Unchanged
In welcome news for first time buyers, the Bank of England has opted to leave interest rates unchanged at 0.75% this quarter. In a recent statement, the bank confirmed that its Monetary Policy Committee voted 7-2 to keep the interest rate on hold.
The interest rate remaining at 0.75% is great for first time buyers looking to get a mortgage, as buyers will benefit from paying back less on their mortgage compared to if interest rates had increased.
The current rate reflects the uncertain state of the economy, however is predicted to rise in the coming months following the general election and the so-called ‘Boris bounce’ restoring confidence in the UK economy.
There has therefore never been a better time to buy than in the current state of the market. This low interest rate, coupled with the option of Shared Ownership, makes getting on the property ladder even more affordable for first time buyers.
Through Shared Ownership, you purchase a share of a home (typically between 25% and 75%) and pay discounted rent on the share you don’t own. This also results in a smaller mortgage, as you only take out a mortgage for the share that you own.
If you’re interested in getting on the property ladder and looking to purchase a Shared Ownership home, we have a range of recommended mortgage advisors who specialise in part buy, part rent and can talk you through the purchase process. Contact our friendly sales team on 0300 555 2171 or send them an email.
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