UK Property - Base Lending Rate remains at 0.5%
Knight Frank Finance offers lower lending margins as base rate remains on hold
Those looking for competitive mortgage funding should consider looking further afield than the High Street banks, according to Simon Gammon, head of Knight Frank Finance.
Despite the Bank of England keeping its base rate on hold at 0.5% for the eighth month running today, mortgage rate margins are typically still over 3%. A typical tracker rate for a new borrower will therefore be above 3.5%. Longer-term fixed rates are mostly above 5%.
This week’s announcement that the government will be splitting up RBS and Lloyds into smaller banking units, which between them cover more than 50% of the mortgage market, also suggests that these margins will not be reviewed for a considerable time.
Although there are some eye-catching headline rates available, the criteria attached are often very strict meaning only a small number of borrowers can take advantage of them.
Via our excellent contacts with private and overseas banks we can arrange mortgage funding well below that of the High Street rates. Our detailed understanding of our clients’ situations and the way that we carefully present their cases to lenders allows us secure preferential rates for them. If you are unsure what mortgage is best for you, we recommend you consult an expert.
Courtesy: Knight Frank Residential Research
For further information, please contact:
Simon Gammon, head of Knight Frank Finance,
+44 (0) 7748 181 322
Davina Macdonald Lockhart in the press office.
+44 (0) 7796 996 154