Remortgage in March to get predicted lowest base rate
Published: 5 February 2009 By MoneyhighStreet Staff Leave a Comment
The Bank of England has just cut the base rate to 1% but according to a recent survey most of the British population think it will fall still further and so are waiting to remortgage and fix their mortgage.
According to the research by unbiased.co.uk, most are predicting that it will be March before the base rate falls to its lowest level.
As a result many borrowers are waiting for the lower rates before they remortgage in the hope they can get a fixed rate mortgage below 4%.
According the research the average rate that people are willing to fix their mortgage at for a three year period is 3.86%. This is lower than the lowest fixed rate mortgage currently available.
Interestingly more than a third of those questioned are holding out for fixed rates of below 3% before they look to fix their mortgage.
Chief executive of Unbiased, David Elms, said ‘Interest rates are now 4% lower than just 12 months ago. With rates so low, and further cuts likely to have been priced in by lenders, borrowers need to ensure they don’t lose out by holding out too long for falls which may not come.’