Homeowners are today missing out on some of the lowest fixed mortgage rate deals available in the last twenty-four years.
On the 9th March 2009, the Bank of England first reduced the base rate to 0.5% where it has remained for the last 31 months and homeowners have become complacent about changing their mortgage arrangements as the mortgage rate has remained static.
Lowest Mortgage Rate Dilemma Faced By Homeowners
Homeowners have preferred to remain on the standard variable rate (SVR) rather than change to any other type of mortgage deal around. In the past, the standard variable rate was known as the worst mortgage rate a borrower could be acquired as it was always more costly than any of the other mortgage rates available. To know more about Mortgage Rate visit https://pekoe.ca/.
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The mortgage rates we currently have are unprecedented and there are winners and losers. The winners at the moment are the mortgage borrowers who were reported to have saved fifty-one billion pounds whilst the savers had lost some forty three billion pounds.
This discrepancy will need readjusting at some time in the very near future without a doubt. As inflation rises higher the bank of England will want the mechanism of being able to increase interest rates to control the inflation.
However, homeowners still have the lowest mortgage rate dilemma and they will need to be sure that they are able to move quickly and secure another great rate before the rates increase.