The Bank of England’s decision to cut interest rates for the first time in seven years spells good news for Surrey property-watchers.
The recent decision by the bank of England means that the base rate now stands at a record low of 0.25 per cent, and the latest announcement last week has confirmed that this cut will be passed on to home buyers eager to secure a cheaper mortgage rate.
This interest rate cut is in addition to the already reduced rates and increased flexibility from some mortgage providers, leading to an increase in confidence and affordability for Surrey house hunters, be it first-time buyers, downsizers or anyone in between.
Phil Chapman, Managing Director, Linden Homes South comments on the announcement of Bank of England lowering interest rates:
“Following the key rate being held at 0.5% since March 2009, it is really encouraging to see the Bank of England now lowering interest rates to 0.25%. This announcement should boost buyer confidence in the market, with this underlying message of a continued low interest rate environment.
“For house hunters, this news will be welcomed as a positive step towards making home ownership more attainable with lenders responding with an excellent range of fixed and variable products. These lowered rates, in addition to schemes such as Help to Buy make it a good time for a range of buyers to get onto or up the ladder.
“We have a number of developments at Linden Homes across the South where these benefits can be reaped. Previously, someone with a typical 25-year mortgage of £250,000 paying 2.09% interest last year could now see their monthly repayment fall by around £63 per month; a significant saving and one to take advantage of.”
Linden Homes South has developments across the South of England, including Hampshire, Dorset, Surrey and West Sussex.
*Figures are based on the new rate of 1.54% for a 2 year fixed mortgage agreement.
15 August 2016
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