BREAKING NEWS!!!! Base Rate dropped to 0.1%

By Jack Adams, CEO of We Are Mortgages

19th March 2020

We are in completely unprecedented times right now. The Bank of England has cut interest rates again to 0.1%. That’s twice in just over a week and the lowest it has ever been! EVER!!

Usually the Bank of England review the Base Rate on a monthly basis, and we have seen only very small marginal movements in the Base Rate since March 2009 where it dropped to 0.5%.

0.25% was the previous all time low which we first hit in August 2016. The Bank of England are really trying to help the economy by making borrowing cheap and encouraging people to spend.

I can’t stress how important this is. A drop to 0.1% is completely unprecedented and a big move from the Bank of England. This is GREAT NEWS for all borrowers 😊

What does this mean?

The Bank of England Base Rate determines all savings and borrowing rates in the UK. When the Base Rate is low, interest rates are low and when the base rate it high so are savings and borrowing rates.

So in summary… it’s a great time to buy a home, remortgage or buy an investment property!

How long will this take to take effect?

As you can imagine, lenders aren’t the quickest of all industries. However, we will see Banks start to reduce rates across the board.

Please bear in mind the base rate has been extremely low since March 2009, so rates are already extremely cheap, and you may not find a huge difference in your deal!

However, this is great news for anyone borrowing money because it’s as cheap as it could possibly be.

How will it affect me?

Everybody is different and everybody’s circumstances are different so it may not affect you at all.

The best advice here is to speak to one of our Mortgage Mentors at We Are Mortgages who’ll be able to navigate the storm and give you all the advice you need.