The Bank of England base rate cut that’s come post Brexit referendum will translate swiftly into good news for any homeowners already on base rate tracking mortgages but importantly for the market as a whole it will also mean better rates for those looking to get their feet onto the property ladder.
The record low base rate of just 0.25% should result in lower monthly repayments for anyone taking out a mortgage now, which is great news in itself, but added to that comes some initiatives from major banks looking to stimulate lending.
Andre Austin comments, “We are now seeing lending terms increasing which has a significant impact on monthly mortgage costs bringing them into the reach of a much broader range of islanders. For example, we have a number of properties on the market for £175,000, with the new products out there that offer a 35 year term, the monthly payments could be as low as £456.62, that’s below most rental properties and represents a better investment now than the majority of savings products.
First time buyers are key to a healthy property market, we always recognised that and for the past year our Swoffers First initiative has been instrumental in keeping it moving. This is one piece of good news hot on the heels of another and we’re confident it can only have a positive impact on the market.”
