/ Author: SPF

The news that the Bank of England has cut the base rate to 0.25% should be welcomed by many existing homeowners as well as those looking to purchase in the near future.

Anyone on base-rate tracker mortgages where there is no floor on the product, should benefit almost immediately, whilst those on variable rates may also see a reduction in their monthly repayments if their lenders decide to pass on all or part of the reduction.

For people looking to purchase a property any reduction in interest rates is good news. There are astonishingly low rates already out there, but they could potentially fall even further and at SPF we expect more competitive mortgage options to come to the fore in the wake of this announcement.

However, for many the deposit, not the repayments, is a stumbling block and for that a Government initiative for first time buyers would be key in helping a large number of islanders purchase their first home whilst stimulating the property market and the wider economy.