Buyers in the UK property market are likely to see the price they have to pay for their mortgage repayments remain low, or even reduce, in the next few months, as the uncertainty around the Brexit process, set to kick in from the end of March, keeps mortgage rates low.
Earlier this week, parliament voted to pass the Brexit bill, meaning that the government is now free to put in place its plans to trigger Article 50 by the end of March this year. And the negotiations that follow are likely to leave the UK in a period where everything is a bit up in the air.
And according to experts in the lending industry, the central bank is likely to take an approach where the mindset is to wait and see what happens, meaning that there will be no drastic moves to increase the base rate in the near future, which will help to keep mortgage rates at historic lows, and make borrowing for a purchase affordable.
This is a trend that could help many newcomers, who will fear not being able to afford a home in the future, get onto the ladder now while it's cheaper to do so. Although inflation could hit 2.8 per cent this year, base rate levels are set to stick at 0.25 per cent, giving borrowers some of their best conditions for years.
Ishaan Malhi, chief executive officer of online mortgage broker Trussle, said: "This is great news for hopeful first time buyers, who are being given more time to take advantage of extremely low mortgage rates as they climb onto the property ladder. The Bank of England’s strategy should also be welcomed by existing mortgage holders looking to switch to a more suitable deal."
Russell Quirk, eMoov chief executive officer, went on to say that there has rarely been a better time, at least in recent years, for first timers to make that initial step onto the property ladder.