Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

Call: 01344 225 149 or 07979 690 056

What does Bank of England base rate cut mean for you?

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What does Bank of England base rate cut mean for you?

On 11th March, the Bank of England (BoE) slashed interest rates from 0.75% to 0.25% to help reduce the impact of COVID-19 on the economy and on the 19th March, it cut rates still further to a record low of 0.1%.

But what does this mean for you and your finances?

Reduced mortgage payments

If you are one of the 11% of borrowers on a 'tracker rate' mortgage, you will see a reduction on your mortgage repayments. This is because tracker mortgages follows or 'tracks', the BoE base rate. Similarily, those on variable rate mortgages (comprising 14% of all UK mortgages) should also benefit from the base rate cut.

However, you'll lose out if you're on a fixed rate deal, so consider remortgaging while deals are still available.

Bad news for savers

Savers are set to recieve even less of a return on their investment. Still, some accounts will have a better rate than others, so it's worth shopping around.

A blow for first-time buyers

With lenders pulling 'riskier' products off the market, first-time buyers could struggle to secure a deal. Those still saving for a deposit could also face setbacks if the values of their savings drops.

 

You may have to pay an early repayment charge to your existing lender if you remortgage

 

We can help you!

If you would like more information or help with your mortgage please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at info@simmondsmortgage.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage

 

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Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.

What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

There may be a fee for arranging a Mortgage and the precise amount will depend on your circumstances. This will typically be £399.00 paid once the mortgage offer has been confirmed.

There may be a fee for arranging an Equity Release or Lifetime Mortgage and the precise amount will depend on your circumstances. This will typically be £799.00 and is due on completion of the mortgage.

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