loan-approvedRates charged on new mortgages are already at the lowest they have ever been. According to some experts, there’s still room for this to fall even further.

A few weeks back we reported the Bank of England’s historic cut of Bank Rate down to 0.25% – this came with a warning from the BoE that lenders must pass on this reduction to existing borrowers as quickly as possible. Therefore, borrowers with tracker or standard variable rate mortgages should begin to experience lower monthly repayments in the near future.

For those of us looking to start borrowing or to re-mortgage, it’s a question of whether or not fixed-rate deals will improve even more – there are already some great deals out there, but experts say there may be even better rates to come.

Lower rates are on the cards because competition in a smaller market has been driving down rates. According to some experts, ‘the decreasing cost of finance’ i.e. the cost of buying and selling money also has an effect. Japan is considered to be a comparable market, where negative rates are prevailing.

Others have a different opinion – rates such as HSBC’s two-year fixed rate deal at 0.99% will be difficult to beat.

Whichever way things go, it is a great time for borrowers looking to pick up a fixed-rate deal, with rates currently at an all-time low. For some people, it may be worth holding out to see if rates improve further. For further advice and for recommendations on your own personal situation, speak to your local specialist financial advisor, who can help you decide what the right move is for you.

Fixed rate mortgages to fall even further

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