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The Bank of England (BoE) has decided to keep the base rate of interest fixed at 5.25% … for now, at least.

As a Guildford mortgage broker, the fact that the base rate is going nowhere is a good thing. Not quite as a good as a cut, of course. But it’s still positive.

Here’s why.

Stability is on the horizon

From the perspective of getting a mortgage in the UK (and certainly getting the best mortgage deals in the UK), it’s been a long slog. Probably a two-year slog, in fact. But this is changing.

The fact that the BoE has held the rate for the sixth time in a row indicates this. Yes, 5.25% represents a 16-year high, but interest rates were never going to stay at rock bottom levels for ever.

And whilst there are many homeowners who have only ever known the cost of borrowing to be exceptionally (not to mention unusually) low, this was a blip in time that’s now being corrected.

However, the majority of experts, forecasters and pundits are predicting a rate cut very soon. Our team of Guildford mortgage advisers also predicts this, too. Interestingly, two of the nine members of the Monetary Policy Committee actually voted to cut the rate. And even the BoE’s Governor, Andrew Bailey, said that it could cut rates faster than the City expects.

What it means for mortgages

Imagine a small car going up a very large hill.

That’s been the mortgage market – if not the UK economy in general – of late. However, the long hard upwards push is almost over and we’re now about to reach the brow of that steep hill. This week’s decision to hold the base rate demonstrates this.

Hopefully – and we’re predicting by the end of summer – we’ll be rolling down the other side of the hill as things get easier and the base rate (and therefore mortgage rates) begins to fall.

Should it stop you from applying for a mortgage now? Absolutely not. As we’ve previously covered, the 6-month rule still applies, so any offer you get today that’s bettered 6 months down the line can be cancelled and you can reapply for the rate of the day.  Just be aware that you generally need to allow up to 14 days for any new offers to be processed, although this does vary from lender to lender.

But that’s beside the point. The real message from today’s interest rate announcement is that the base rate going nowhere signals that things are definitely on the up when it comes to getting a mortgage.

To speak with a mortgage broker in Guildford, contact Complete Mortgages’ team of Surrey mortgage advisers on 01483 238280 or e-mail info@complete-mortgages.co.uk.