The Bank of England keeping its base rate at 0.5 per cent on the 7th November wasn`t unexpected and means that people with variable mortgages and loans which are tied to the base rate won`t have to pay any extra on their repayments.
It`s the 56th month in a row that the central lender has kept its policy the same and it may even continue to do so for some time yet, as its forward guidance has indicated that it may only alter the rate once unemployment drops below seven per cent – it`s currently at 7.7 per cent.
While it was first estimated that the jobless rate wouldn`t drop below the magic number before 2016, constantly improving UK stats now mean that it`s more likely to come in 2015, although some optimists reckon it may even happen some time next year.
It`s definitely something that people with mortgages and loans need to consider, if the amount they repay is based on the Bank of England`s rate, whether it`s a an on going tracker deal or one that`s the base rate plus a certain fixed amount on top. Also bear in mind if you have a fixed rate deal that will normally revert to the lenders variable rate when the deal ends.
If your fixed mortgage deal is coming to an end or you are now on a variable rate and want to fix, you may want to contact First Choice Finance to see the kind of deal that can be found for you from our lenders. Visit firstchoicefinance.co.uk or call us on 0333 003 1505 from a mobile or 0800 298 3000 for your free personal quotation.
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