What does the 0.1% base rate mean for mortgages?


What does the 0.1% base rate mean for mortgages?

 

In March, the Bank of England cut the interest base rate from 0.75% to 0.25%, and eight days later, in response to the economic shock caused by coronavirus, cut the base rate further – all the way down to 0.1% – the lowest level in history.

 

What does this mean for mortgages?

 

The second cut to the Bank of England’s base rate will be beneficial to existing homeowners on tracker mortgages, who will have seen an immediate cut to their outgoings, as their mortgage repayments move in line with the base rate. 

 

The base rate cut is also beneficial to first time buyers, who will gain from cheaper interest rates when taking out a mortgage on their new home. While the government advises delaying moving homes where possible in the current time, now is a great time to prepare everything you need to move into your new Shared Ownership home.

 

We have a number of properties available to purchase in London, Brighton and the South East via 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 need to borrow for the share that you own.  

 

For all the information on how to get the buying process started, including floorplans, pictures, share details, financial eligibility and local area information, please visit our website or 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.