The Bank of England this month announced that rates would remain on hold at 0.5%, bringing to an end a 6-month run of unprecedented rate cuts. Since October last year, the Bank of England rate has fallen from 5% to just 0.5% as the UK economy fell into recession.
Over the last few months, many borrowers have been in no rush to secure a new mortgage deal as rates gradually fell, but this hold decision suggests that the time to consider a switch may have finally arrived. Swap rates, which determine the price of new fixed rate mortgages, have stabilised in recent weeks after months of falls. For L&C customers, fixed rates have proved to be the most popular type of deal by far recently as borrowers look to secure a deal that will protect them against future rate rises. Many borrowers are also choosing to fix for three or five years as an alternative to the usual two. If you're looking to buy a new home, lock into a fixed rate deal, or just improve the rate you are paying, now could be a good time to make a move.