Bank of England - UK Interest Rate Cut to Record Low
Mortgage rates are set to hit record lows following the government’s recent emergency interest base rate cut in response to the economic shock caused by the coronavirus outbreak.
In a recent statement, the Bank of England confirmed that its Monetary Policy Committee voted unanimously to reduce the base rate from 0.75% to 0.25%. Since then, the Bank of England cut the interest rate further, now down to 0.1% - the lowest level in history.
What does this mean for mortgages?
The lower interest rate is beneficial first time buyers, who will benefit from cheaper interest rates when taking out a mortgage.
Existing home owners with base-rate tracker mortgages – which move in line with the Bank of England base rate - will also benefit from a significant cut to their mortgage costs.
With the interest rate cut in mind, there has never been a better time to get on the housing ladder. If you’re looking to purchase a new home, we offer a number of properties through Shared Ownership. 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 results in a smaller deposit, and crucially a smaller mortgage - as you only take out a mortgage for the share that you own.
If you want to understand more, contact our friendly sales team on 0300 555 2171 who will walk you through the purchase process and help you understand your buying options.
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership is dedicated to providing stylish, high quality and contemporary new homes for sale on a Shared Ownership basis.
If you're a first-time buyer and interested in owning a Shared Ownership property in London or the South East, then take a look at our range of developments.