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Interest rates in the UK, Europe and beyond
At a time when financial uncertainty is never far from our minds, we thought it might help if we show you where the UK sits when it comes to interest rates. Currently at 0.750%, the rate increased from 0.500% in August 2018.
Euro REFI’s interest rate is 0.00%, which decreased from 0.05% in March 2016. The European Central Bank (ECB) is the central bank for the eurozone – it’s the bank of the EU countries which accept the Euro, all 19 of them.
How is Brexit likely to affect 2020 mortgages and house prices?
We have said it before and we’ll say it again: the one thing that is certain about the impact of Brexit is uncertainty.
The way in which we leave will almost certainly shape what happens with mortgages and house prices in the coming year, with a likely fall in house prices should we go with the no-deal Brexit option.
Can we expect sub 1% mortgagee deals?
In a changing world one thing is for sure, in terms of interest rates, mortgage borrowers have never had it so good.
Since 2009, the base rate has been below 1% which has meant lower cost borrowing for many; however, ultimately mortgage lenders still need to make a profit so there has always been a margin on top of this.
2019 year-end house prices
The latest UK House Price Index figures show that September 2019 saw the average house price stand at £234,370.
Compared with the previous month, property prices have fallen by 0.2%, though year on year, they have risen by 1.3%.
As the end of the year approaches, we think Rightmove sum things up pretty well when they say: ‘Looming election deters sellers but cheaper prices tempt buyers’. We do seem to find ourselves in a swings and roundabouts situation.
2019 year-end mortgage lending market
As always, the market differs by region and fluctuates according to the season. Therefore, adding external variables like the current economic and political situation in the UK, can skew things, somewhat. Typically, during the autumn and winter months, the lending market is quieter.
