The Sun’s James Flanders explains how to find the best deal on your mortgage
MORTGAGE lenders have raced to slash their rates after the Bank of England cut interest rates to 4.75% this afternoon.INTEREST-INGInterest rates had previously risen from historic lows of 0.1% in December 2021, peaking at 5.25% in July 2023, as part of efforts to reduce inflation to the Bank's target.
With a tracker mortgage, you'll usually pay the base rate plus an additional percentage in interest each month.This rate will change in line with the base rate and is usually higher than any initial introductory rate.TotallyMoney states that today's 0.25% rate cut will immediately save homeowners £32 a month or £382 a year on the average tracker mortgage.
If you've got a tracker or variable rate mortgage with Barclays, your mortgage rate will fall by 0.25% on December 1.Following the Bank of England Base Rate change, all Coventry Building Society mortgages that track the Base Rate will automatically decrease by 0.25%.Where a customer has a mortgage that tracks the bank base rate, their rate will be cut with immediate effect in line with their terms and conditions.The Halifax Standard Variable Rate , currently at 8.
Metro Bank said it would formally confirm the changes on its website, and all impacted customers would receive communications about them over the next couple of days.Rates on tracker mortgages held by existing customers automatically decrease when the Bank rate is cut, so these will decrease to reflect the Bank rate change from December 1.
If you're remortgaging and your loan-to-value ratio has changed, you'll get access to better rates than before.A change to your credit score or a better salary could also help you access better rates.You can lock in current deals sometimes up to six months before your current deal ends.
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