Borrowers Expect Homeowner Loan Rates To Come Down Further Yet
It’s the first Thursday of the month once again (already?), which of course means the usual monthly meeting of the Bank of England’s Monetary Policy Committee (MPC) and once again it is widely expected that the decision will be made to reduce the base rate of interest for homeowner loans as well as savers.
But according to a new survey from Unbiased.co.uk, many borrowers looking for a new loan do not believe that rates have reached their lowest level just yet, even if the MPC cut interest rates again today.
The research shows that the majority of people looking for a homeowner loan think that rates are likely to reach their lowest in March this year and a large percentage of individuals are waiting until this time before they commit to a fixed rate loan.
Only 8 per cent of those interviewed thought that loan rates have hit the bottom. The magic number for a three year fixed rate seems to be around 3.86 per cent and if rates do reach this level it is likely that we will see a mad rush of individuals all trying to re mortgage their homes at the same time.
David Elms of Unbiased.co.uk said “Even without a further rate cut, interest rates are now 4 per cent lower than just twelve months ago. With rates so low, and further cuts likely to have been priced in by lenders, borrowers need to ensure they don’t lose out by holding out too long for falls which may not come.
In today’s fast changing mortgage market, borrowers can no longer count on general rules and this is where the value of personal, expert advice becomes clearer than ever.”
