Homeowners looking for rock-bottom mortgage rates should act now

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The Bank of England took steps at the end of November to quash the surge in interest in new mortgages, in response to increasing fears the UK could be on the brink of another housing bubble.

Concerns have been growing since The Treasury forecast that house prices could increase by up to 10% in 2014, and The Council of Mortgage Lenders (CML) reported a third quarter increase of 32% in London-based first-time buyer lending, compared to the third quarter of 2012.

Taking into account these factors, The Bank of England formally announced an end to its support of the Funding for Lending scheme, in a bid to reduce the amount of low-interest mortgages being granted.

The scheme, which allows banks to pass on cheap credit to consumers, will come to an end in the new year, with banks instead being incentivised to lend more to small businesses.

For consumers, this change will have little impact during December, although movement and action may well be appropriate in the New Year.

For those whose mortgage is almost at an end, taking advantage of a re-mortgage whilst cheap rates are still available may seem like a sound course of action.

Indeed, for clients who are currently considering a mortgage move, or who are looking at a potential new property purchase, it may well be the case that moving sooner rather than later could result in a wider range of options, including the cheaper rates still currently available from many mortgage providers.