Video transcriptNot only are interest rates apparently set to remain low in the short-term, but they could stay much lower than they were before the financial crisis, which will benefit homeowners.
The Bank of England`s governor, Mark Carney, told the BBC`s Newsnight that there`s "no immediate need to increase interest rates", even though unemployment is rapidly improving and could fall below seven per cent in coming months which was previously mentioned as a possible bench marker for change.
Following that, a speech at the World Economic Forum in Davos from Dr Carney suggested that "the level of interest rates necessary to sustain low unemployment and price stability will be somewhat lower than before the crisis". For much of the decade before the crash, the base rate was between four and six per cent.
With the current 0.5 per cent rate having been in place since March 2009, people buying or remortgaging property have enjoyed deals that have been much lower than in the previous years, with many choosing to overpay while the rate has been so low.
Even if the `new normal` for interest rates isn`t poised to be as high as previously, now is possibly the time to make extra payments on your home and if you are due to remortgage or want to purchase a home it may be worth getting some facts and figures now, as rates aren`t going to be this low forever.
If you want to become mortgage free quicker, check if you can pay extra with your current lender and look into shorter term or lower rate remortgages that could enable you to get the balance you owe down faster.
We`ll use our experience of the market to find the most suitable deal for you from our product panel, we will also explain all charges and costs associated with moving your mortgage through us and give you a free quotation before you decide to go ahead or not.
Discover more about making the most of the historically low Bank of England base rate by getting in touch with First Choice Finance and speaking to our advisers on 0800 298 3000 or 0333 003 1505, or by visiting firstchoicefinance.co.uk.
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