UK Property - Base rate outlook set to become clearer after coalition’s first budget later this month
Base Rate remains at 0.5%
Base rate outlook set to become clearer after coalition’s first budget later this month
"Today’s decision by the Bank of England’s Monetary Committee to keep the base rate on hold at 0.5% for the fifteenth month running was in line with the market’s expectations." says Simon Gammon, head of Knight Frank Finance, which specialises in mortgages over £1m.
"Today’s announcement was very predictable as in fewer than two weeks we will find out what the Chancellor George Osborne has in store for the country when he presents his emergency budget to parliament.
Judging by the cost-cutting measures that we have already seen and the recent comments from David Cameron about the state of the UK’s public finances, I think we can look forward to some pretty tough measures in the budget. This will set the scene for the UK’s continued economic recovery and will give us a better idea of when we might start to see rates rise again. The longer term view is that interest rates will rise considerably from their current record low, and seriously considering a fixed rate for your mortgage now is very important.
Even if rates seem unlikely to change for the next six months it is worth keeping in close contact with your mortgage adviser. There are currently some very competitive five-year fixed deals available, but these could quickly disappear, especially at the first rate rise.
If you are thinking about taking a new mortgage or renewing your existing arrangements at the current time it could pay to talk to an expert so you are ready to move quickly to secure the best rate."
Courtesy: Knight Frank Residential Research
For further information, please contact:
Davina Bell, Knight Frank,
+44 (0)20 7629 8171