Phone Us

Lowest Ever Mortgage Rates Ahead of Bank of England Interest Rate Announcement

Fixed rate mortgages are currently standing at a historic low following the Brexit vote it has been revealed.

Historic Low Fixed Mortgage Rates Ahead of Likely Bank of England Rate Cut

Fixed rate mortgages are currently standing at a historic low following the Brexit vote it has been revealed.

According to the financial data company, Moneyfacts, borrowers in the UK are currently enjoying the lowest two, five and ten-year fixed rate mortgages since the firm’s records began.


Comparing the different offerings across the market and compiling an average for the borrowing costs, Moneyfacts has found that the average two-year fixed rate mortgage now stands at a rate of 2.68%, marking a decrease from the 2.48% seen a year ago.


Similarly, five-year fixed rate mortgage rates have also declined, now available at an average of 3.37%. Whilst the rate for ten-year fixes fell to an average of 3.37% - a 0.37% decrease on the rate seen in July 2015.


The announcement of record low mortgage rates comes on the morning of the Monetary Policy Committee’s August briefing.


Surprising many in the market who expected a cut in rates last month, the Bank of England’s committee elected to keep rates at 0.5% - the same rate they have stood at for the past seven years.


Many economists are predicting that the Bank will now have to cut rates in the face of the economic uncertainty seen in the UK since Brexit.


For the mortgage market, Charlotte Nelson, financial expert at Moneyfacts, has suggested that this may lead to even cheaper mortgage rates.


‘With the economic uncertainty and fixed rates currently the lowest on record anyone coming to the end of their deal or sitting on their standard variable rate (SVR) would be wise to consider a fixed rate deal.’

X
Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?