The Bank of England base rate has been reduced to 0.25%. This means some tracking rates may see a reduction in their rate of interest and monthly mortgage payments shortly. Not all borrowers on tracking rates will feel the benefit of this reduction as some tracking rates have floors on them meaning the rate will not go below a certain percentage.
As rates have already been historically low we might see a very minimal reduction to the cost of borrowing this time round if any at all. The reduction in the base rate may make short term tracking rates look very appealing to potential borrowers.
If you want to know more about how the base rate change may affect your mortgage – give our experts a call or request a callback and they can advise on the best option for your circumstances.