Base rate stays at 0.5% |
The Bank of England has voted today to keep its base rate at 0.5%. It has been at this historic low for 3 years now, despite the fact that inflation has been above the target of 2% for over 2 years.
Although the base rate is so low, mortgage rates for borrowers are still much higher, with 90% mortgages at ~6%. A significant improvement in mortgage rate can be netted by putting down a 15% deposit though, with many 85% mortgages available for less then 4.5%.
90% mortgages do appear to be more available now though, with First Direct recently adding a 90% fixed rate mortgage to their offerings, at the excellent rate of 4.19%.
