Thats right Interest rates down to 5.5% and I’m about a week late to report this but is it really news?

The Bank of England last week dropped their base rate to 5.5% the first drop in rates in 2 years. Economists predict that rate will reach 5% by mid next year.

Save £21, Merry Christmas!!

On a mortgage of £100k the annual interest is £5750 at the old rate. At the new rate it would be £5500. Thats a whole £250 cheaper a year, on someones monthly mortgage payments thats a whopping £21 cheaper every month. Nothing really to right home about, thats less then £1 per day cheaper.

Interesting things are happening on the new mortgage side of things though. Confidence in lower interest rates for the near future is high. Fixed rates are falling, lenders are lowering their fat arrangement fees, things in general are looking better for investors. The best rate for investors at the moment is from..

Yup you guessed it BMS. Birmingham Midshire Solutions have released a 5.09% 3 year fixed rate with only 1.5% arrangement fee. This is THE best rate to come along in months so I bet investors will be scrambling to get it. I would love to take advantage of the new rate, but i’ve got to find a house to buy first!