Home borrowers hope for savings after Bank of England rate cut
Brokers have been inundates with calls from confused borrowers as the base rate is slashed.
Following yesterday's Bank of England rate cut, brokers say they have been inundated with calls from borrowers currently applying for a mortgage, believing that the base rate reduction will instantly make the mortgages they were due to take out cheaper.
Even many borrowers on fixed rates, brokers say, think their mortgage payments will benefit from the cut.
Jack Tutton, Director at Fareham-based SJ Mortgages, said: "We have been inundated with clients asking about the impact of the reduced base rate on their mortgage application, with most expecting their rate to be reduced instantly in line with the reduction. This, of course, isn't the case.
“The most recent cut to the base rate had been expected and priced into mortgage products for a while.
“The fact that the vote was a lot closer than many had expected has had the opposite effect with financial markets and we could start to see rates go the wrong way should this continue.”