Help For First Time Buyers Entering The Housing Market?

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Jill Smith is from Mortgage Advice Bureau and comments on the latest Bank of England's MPC's decision to hold interest rates at the record low of 0.5%.

“The Bank of England's Monetary Policy Committee has again decided to hold interest rates at the record low of 0.5% for the 35th month and has announced that it is to increase its Quantitative Easing (QE) programme as it bids to stave off a recession.

Overall Product Numbers

Overall mortgage product numbers reduced a little in January, although we continue to see an increase in the number of mortgage products both at 90% and even 95% loan to value. This will enable more potential purchasers and in particular first time buyers to potentially enter the housing market.

Average Rates

February has witnessed a small rise in the average cost of 2, 3 and 5 year fixed rates and also in 2 year trackers, although all three categories of fixed rates remain below the same period in 2011. Average initial rates for fixed deals are currently 4.36% (2yr), 4.63% (3yr), 4.64% (5yr) and 3.54% for 2 year trackers.

The UK is directly affected by what happens in the eurozone and with this latest round of QE and with the base rate again held at 0.5%, this could end up providing a boost to mortgage borrowers. “

To find out how the latest base rate decision affects you or if you are a first time buyer looking to enter the housing market call:

Jill Smith from Mortgage Advice Bureau on 01782 664995 or email: jillsmi@mab.org.uk

Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed. (or enter own fee statement) MAB 5243