What does the November 2013 Bank of England base rate mean for mortgages

What does the November 2013 Bank of England base rate mean for mortgages

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Video transcript

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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Homeowner Secured Loans
9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages
8.4% APRC.
Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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