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Financial snakes and laddersMonday 12th September 2016
It rather depends on your financial intentions as to whether you view the recent bank rate cut as a snake or ladder in your life progress.
It’s great news for those on ‘tracker’ mortgages because lenders will have to bring their rates down. But savers will have been left gnashing their teeth again – particularly if trying to save for a deposit. First time buyers will see no immediate benefit either – those mortgage deals with the lowest headline rates normally come with conditions, such as higher arrangement fees, early repayment charges and the requirement of a hefty deposit.
But for those looking to remortgage, the horizon is full of opportunity – with a few provisos of course. Leading the charge in competitive rates again is Coventry Building Society with its launch of a super-low – under two per cent (APRC 3.2 per cent) – seven year fixed rate residential mortgage. This product does have fairly strict criteria, notably a chunky 50 per cent deposit requirement.
If you are looking to remortgage though it could be an opportune time to take advantage of the competitive market and remortgage to an excellent deal. A rate increase in the UK is considered a long way off but since the US Federal Reserve Chair, Janet Yellen, recently indicated that the case for a rate hike in the US has ‘strengthened’, and the UK tends to follow the US’s lead, the time could be just right to lock into a new mortgage deal.
If you would like to take advantage of this competitive market, please call your Financial Planner at Rouse Limited.
A version of this article originally appeared in the Isle of Wight County Press, Friday 9th September 2016