If there is anything good at all to say about the recession it is that during the credit crisis the interest rates for mortgages and remortgages was low. and this is the one and only good comment that one can make about the credit crunch.
During the credit crisis the UK Government brought in an interest rate for The Bank of England Base lending rate to only 0.05% which was an historic low.that had never eisted before.
The entire economy of the UK experienced no growth what so ever and certain industries were harder hit than others with the construction industry one of the worse affected. Houses simply stopped selling and many major builders just could not sell the new properties built.
In an attempt to sell the unsold properties many well known builders offered all sorts of enticements to attract buyers to their properties, and it was possible to have upgraded bathrooms, kitchens, soft furnishings, etc. all thrown in for no additional cost.
In a great effort to sell homes many builders reduced the price of their properties by substantial amounts and homes previously on sale at say 500,000 were available now at 390,000
It was due to all this that the Government introduced the base lending rate to the lowest in history in an attempt to help the UK economy in general and the construction industry in particular.
Everyone needs a mortgage to buy a home and with the base rates at an all time low mortgages as well as remortgages fell to an all time low, and were great bargains.
Tracker mortgages and their associates remortgages which follow the base lending rate therefore had their lowest ever interest rates and even now that the recession is over tracker remortgages and mortgages are still available from only 1.34% above base giving a rate of only 1.84%
As tracker remortgages and mortgages track the base rate when it goes up so will remortgage and mortgage payments.
However fixed rate mortgages and remortgages are also very low currently with rates available from 2.99%
Of course when the base lending rate rises so will the interest rates for remortgages and mortgages and the repayments will be more expensive.
The low mortgage interest and remortgage rates available now make it a time to obtain a great rate for remortgages or mortgages before rates increase in the near future, as these low remortgages and remortgages will not always be with us.
categories: mortgage,mortgages,remortgage,remortgages,homeowner loans,secured loans,debt loans