Guide to mortgage advice in a low interest rate environment
- The current situation with interest rates
- What might happen if the Bank of England reduces rates to 0%
- What advice should advisers give to their clients?
Guide to mortgage advice in a low interest rate environment
- The current situation with interest rates
- What might happen if the Bank of England reduces rates to 0%
- What advice should advisers give to their clients?
Introduction
By Emma Ann Hughes
The Bank of England has slashed the base rate to a historic low of 0.25 per cent.
The reduction in the Bank of England’s base rate will have prompted many consumers to seek advice.
Variable rate mortgage holders will enjoy lower monthly payments and any saving could be utilised to ensure that client’s protection needs are fully met.
They may also benefit from a mortgage review, as it could be beneficial for many consumers to fix their mortgage rates at this historical low.
This guide explores what shapes mortgage rates, what will happen if the Bank of England reduces the base rate to 0 per cent and what advice you should give clients in the current low interest rate environment.
Supporting material produced by Lee Travis, head of professional development at the Society of Mortgage Professionals; Jeremy Duncombe, director of the Legal & General Mortgage Club; David Copland, Director at TMA Mortgage Club; and Peter Rogerson, commercial director for mortgages at Virgin Money.
