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It has been widely publicised that the Bank of England base rate remains at its lowest ever level. This means that many home buyers and home movers have seen relatively low interest rates. Those looking to remortgage could also currently benefit from a competitive fixed rate deal, to avoid moving onto their lender’s standard variable rate.

But is this era of low borrowing costs coming to an end? Are we about to finally see a return to higher interest rates?

The end in sight for rate cuts

After many months of rate cuts from lenders, some experts feel this period of intense competition is finally coming to an end. But despite warnings of an upcoming increase in rates in 2017, some big lenders are currently reducing their rates even further and announcing best buy contenders. It seems that as long as competition remains strong, lenders will continue to compete to reduce rates where possible to entice new business.

Uncertainty reigns

Talk of an increasing base rate took a back seat after the vote on the EU Referendum. But will Brexit’s eventual commencement actually act as a catalyst of change after a period dominated by a poor economic outlook? Only time will tell, but it was only last year that many in the market were factoring in for a rate increase that they were certain would happen. It seems that the only thing that is now certain, is uncertainty.

In the meantime, competition between lenders to offer low rates continues, which makes it an opportune time for low borrowing costs and remortgage opportunities.

Speak to our adviser today to find out more about your borrowing options.

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