An update on the mortgage market and what it means for you

The Bank of England today opted to leave the base rate unchanged at a record low 0.1%.

Whatever the season, a central bank rate at all-time lows is good news for borrowers. That is particularly the case today, due to a combination of powerful market forces that are bringing mortgage costs down further.

Firstly, it appears the lenders have been hard at work over the Christmas period. Most have made significant progress working through a backlog of mortgage applications that accrued during the unseasonably busy housing market in the second half of 2020.

Armed with more manageable pipelines of business, the banks have a renewed enthusiasm to lend. That is being compounded by the fact lenders typically set new targets at the turn of the year and use the first quarter to gain market share.

The stamp duty holiday, due to end on March 31st, continues to underpin housing market activity. With fewer than two months to go, borrowers have a narrow window of opportunity to complete deals before the deadline.

If you are seeking a new mortgage, planning to remortgage, or would like to have an informal chat about your finances, please get in touch.

• I am looking to remortgage - what does this mean for me?

You can apply for a re-mortgage up to six months before your current mortgage deal ends. By acting early, you could take advantage of the current low interest rate environment and lock in a new low rate for years to come.

• I require a buy-to-let mortgage - what does this mean for me?

The buy-to-let mortgage market has been relatively unreported on in recent months, but rates have fallen there too. If you are thinking of investing in a buy to let, or you have an existing buy-to-let mortgage, you might be surprised about how much you could save by taking a more competitive deal.

• I am a first-time buyer - what does this mean for me?

With interest rates at an historic low and lenders reintroducing products aimed at those with lower deposits, now would be a great time to find out what options you have if you are thinking of purchasing your first home.