You may have heard the news recently, that The Bank of England has cut the base rate from 0.75% to 0.25% in an emergency response to the “economic shock” caused by the coronavirus outbreak.
Like most economic decisions, it’s important to see the bigger picture and when it comes to the property market, a potential silver lining.
The property industry is completely different to all the other ones, as people will always want to move home, regardless of the interest rate or other economic factors.
But this news is a boost to many home owners and buyers.
A lower interest rate reduces the cost of borrowing, so potentially more people will be able to borrow to buy a new home.
”“At Campbells it’s very much business as usual. This March is the same as any other March.
We haven’t experienced a drastic drop in either valuations or viewings and in fact this week we have negotiated just as many sales as normal.”Paul CampbellDirector
The cut in the interest rate will help to underpin the UK property market and provide a boost to many borrowers and those who may be about to take out a mortgage.
It will also help with household monthly costs and improving the availability of borrowing. Pretty much a ‘win win’ situation, really.
Now is the time to review your current mortgage and see if it is worth re-mortgaging at a better rate.
”“The interest rate cut will also be good news for landlords who are on variable rate mortgages.”Carla FieldProperty Management Expert
If you would like any advice, please do not hesitate to ask – we have all the experts here at Campbells to answer any questions you have and offer any guidance you need.